Auto stocks limit losses for Europe, trade doubts linger
Reuters
Published Oct 30, 2019 08:37
Updated Oct 30, 2019 08:57
Auto stocks limit losses for Europe, trade doubts linger
(Reuters) - European shares struggled for direction on Wednesday as losses due to uncertainty around an interim U.S.-China trade deal were curtailed by a jump in auto stocks following merger talks between Fiat Chrysler and PSA Group.
The pan-European STOXX 600 index (STOXX) was flat at 0810 GMT, with auto stocks (SXAP) climbing 1.2% to their highest level in nearly six months.
Italian-American carmaker Fiat Chrysler (MI:FCHA) confirmed merger talks with French rival PSA (PA:PEUP), a potential deal that could reshape the global auto industry and create a European powerhouse.
Shares of both companies rose between 7% and 8%, topping the benchmark STOXX 600 index.
However, concerns over the U.S.-China trade pact resurfaced after a U.S. administration official told Reuters that it might not be completed in time for the leaders of the two countries to sign in Chile next month.
Trade-sensitive tech (SX8P) and commodity-linked stocks (SXPP) were the biggest decliners among the major European sub-sectors.
Deutsche Bank (DE:DBKGn) fell 5% after reporting a loss for the second consecutive quarter, partly due to costs for a major restructuring.
Markets now await a raft of euro zone economic indicators that will shed light on the health of the trading bloc, along with an expected interest-rate cut at the U.S. Federal Reserve's meeting later in the day.
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Written By: Reuters
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