European Shares Rise Ahead of Crucial Brexit Trade Talks
Brussels, European shares today, on Wednesday ended off session highs as euphoria over a potential U.S. fiscal stimulus and vaccine optimism subsided, with investors awaiting the outcome of make-or-break Brexit trade talks, Reuters reported.
The pan-European STOXX 600 index closed at its highest since February but trimmed gains to finish up 0.3%.
London’s export-heavy FTSE 100 shaved its 1% jump in the session to end 0.1% higher as the pound firmed ahead of a meeting between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen in Brussels at 1930 GMT.
The last ditch attempt at a deal to govern around $1 trillion in annual trade comes after talks so far failed.
Failure to secure a deal would clog borders, upset financial markets and disrupt delicate supply chains across Europe and beyond
Germany’s DAX closed up 0.5%, but retreated from a three-month peak.
Data showed German exports rose less than expected in October, but foreign trade still gave Europe’s largest economy a boost at the start of the fourth quarter as it struggles to avoid slipping into a double-dip contraction.
Gains in Europe were led by autos, while the tech sector lost, dragged down by a 12% slide in chipmaker STMicroelectronics after it postponed its $12 billion annual sales target by a year to 2023.
STM’s Paris listed shares also dropped 12% pulling France’s main index 0.3% lower.
Eyes on Thursday will also be on the outcome of the European Central Bank meeting with more emergency bond buying and cheap liquidity for banks expected.
Source: Saudi Press Agency