BERLIN, Oct 7 — European shares were little changed in choppy trade today, after their steepest weekly loss this year, as bids in defensive shares outweighed nervousness ahead of crucial US-China trade talks and Brexit negotiations.
Bayer climbed 1.3 per cent as the company said a pending US lawsuit over claims related to glyphosate-based herbicide Roundup has been delayed until further notice.
Bayer’s shares helped the healthcare index climb 0.6 per cent, while other defensive stocks popular in times of economic strife — food and beverage and utilities — were also leading gains.
By 0800 GMT, the pan-European STOXX 600 index was little changed, after it tumbled last week on tensions over transatlantic trade wars and a spate of weak US and European data.
Europe’s blue chip STOXX 50 outperformed, adding 0.1 per cent.
Germany’s DAX declined 0.3 per cent after data showed industrial orders in August fell slightly more than expected, underscoring concerns of a recession in Europe’s largest economy.
“European stock markets will be eyeing the trade talks and Brexit and may show little direction at the start of the week,” said Neil Wilson, chief market analyst at Markets.com.
A report that said China officials are increasingly reluctant to agree to a broad trade deal with the United States, kept investors nervous ahead of the trade negotiations starting on Thursday.
“Hopes of a comprehensive trade deal being agreed this week are slim,” Wilson said.
Trade-sensitive automakers dropped 1.1 per cent, leading declines among major sectors.
Among individual stocks, Austria’s AMS tumbled 4.7 per cent after the company said it failed in its €4.5 billion (RM20.7 billion) takeover attempt of German lighting group Osram. Osram was down 4.1 per cent. Both were leading declines on the benchmark STOXX 600.
London-listed shares of HSBC Holdings Plc fell 1 per cent after a report over the weekend said the banking group was planning to cut up to 10,000 jobs to lower costs.
Investors will also be looking at developments around the crucial talks between London and Brussels this week on the Brexit withdrawal deal, with a looming make-or-break Brexit summit on October 17 and 18, and the Britain’s EU departure set for October 31. — Reuters
