Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks - Europe Edges Higher After Trump's China Blast; Maersk Surges

Published 19/08/2020, 08:42
Updated 19/08/2020, 08:43
© Reuters.

© Reuters.

By Peter Nurse 

Investing.com - European stock markets traded largely flat Wednesday, with investors wary about U.S.-China relations, rising tensions in Belarus and ahead of the release of key European inflation data and minutes from the Federal Reserve.

At 3:45 AM ET (0745 GMT), the DAX in Germany traded 0.1% higher, the CAC 40 in France rose 0.1% and the U.K.'s FTSE index was unchanged.

The market overcame initial concern at harsh words by U.S. President Donald Trump saying late Tuesday that he had cancelled a scheduled session of trade talks with China at the end of last week because he "didn't want to talk to them."

The phase one trade deal has been the most stable point in this tempestuous relationship. But Trump's comments indicated that the deal may be in trouble. 

"We are approaching the period of peak risk," said UBS Global Wealth Management chief economist Paul Donovan in a morning note. Trump, he noted, could announce new tariffs ahead of the election "to look tough on China," and put off the hit to U.S. purchasing power and the global economy until after the election.

Markets will pay close attention to minutes from the Federal Reserve's recent meeting due later in the day, as well as any progress towards an interim virus relief package.

Back in Europe, U.K. inflation surprised to the upside, with CPI coming in at 0.4% in July month-on-month and 1.0% year-on-year, above the -0.1% and 0.6% expected. EU data is released, later Wednesday.

In corporate news, Rio Tinto (NYSE:RIO) stock dropped 0.7% after the U.K.-based miner cut its refined copper guidance for the year after problems with a smelter at its Kennecott mine in Utah. 

Staying in the sector, Hochschild Mining (LON:HOCM) stock dropped 5.9% after reporting a sharp fall in pretax profit for the first half of 2020 due to Covid-19 related production stoppages.

On the flip side, AP Moeller-Maersk (CSE:MAERSKb) stock rose 4.9% as the shipping giant reinstated full-year guidance after posting better-than-expected second-quarter earnings. 

RWE (DE:RWEG_p) shares fell 3.0% after the German energy group announced a capital raise to fund its investment in renewables.

Oil prices edged lower Wednesday, consolidating after overnight gains on the back of a drop in U.S. crude inventories of 4.3 million barrels, industry data from the American Petroleum Institute showed after the markets closed on Tuesday.

Investors will now look for the official U.S. government inventory data, due at 10:30 AM ET (1430 GMT), as well as the meeting of experts from the Organization of the Petroleum Exporting Countries and allies including Russia, a grouping known as OPEC+, to review adherence to their deal on oil output cuts.

U.S. crude futures traded 0.6% lower at $42.85 a barrel, while the international benchmark Brent contract fell 0.7% to $45.16. 

Elsewhere, gold futures fell 0.8% to $1,996.90/oz, retreating below the $2,000 level. EUR/USD traded 0.1% higher at 1.1932, on course to touch $1.20 for the first time in over two years.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.