European stocks were mixed on Wednesday; The biggest movers
European stocks were mixed on Wednesday morning as investors digested a robust round of earnings and President Trump’s decision to halt stimulus talks until after the November election.
The pan-European Stoxx 600 hovered just above the flatline in early trade, with utilities adding 1.1% while insurance stocks fell 1.1%.
Markets in the U.S. and Asia-Pacific have been reacting Trump’s tweet on Tuesday that the White House is halting talks with Democrats about a second coronavirus stimulus deal.
The Dow Jones Industrial Average closed down 375 points, having rallied in the session on hopes that there would be a second relief package to prop up markets as the coronavirus outbreak continues.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump said in a tweet on Tuesday.
The S&P 500 lost 1.4% and the Nasdaq Composite fell 1.57% on Tuesday, while oil prices also declined. U.S. stock futures were pointing higher in the early hours of trading.
Trump’s latest move came as U.S. Federal Reserve Chairman Jerome Powell on Tuesday called for continued aggressive fiscal and monetary stimulus for an economic recovery he said still “has a long way to go.” Also on Tuesday, the International Monetary Fund’s Managing Director Kristalina Georgieva said the path ahead will be a “difficult climb.”
Retailer Tesco saw its shares climb 3% in early trade on Wednesday after an upbeat earnings report, while German adhesives company Covestro and Danish diagnostics firm Ambu each gained 3.8% to lead the Stoxx 600.
At the other end of the European blue chip index, Italian payments firm Nexi fell more than 5% after major shareholder Mercury discounted a 13.4% stake in the company, just a day after Nexi announced a tie-up with rival SIA.