LONDON, Aug 13 — European stocks fell today as simmering tensions between the United States and China, and elusive US fiscal stimulus, pushed investors to book profits after four straight sessions of gains, while Airbus dipped as Washington left aircraft tariffs unchanged.
The pan-European STOXX 600 was off 0.4 per cent, with Airbus sliding 1.2 per cent after the US government said it would maintain 15 per cent tariffs on planes and 25 per cent tariffs on other European goods, despite moves to resolve a long-standing dispute over aircraft subsidies.
London’s FTSE 100 was at the front of declines among major European bourses, led by AstraZeneca, BP, Diageo, Glaxosmithkline and Legal&General, which traded without entitlement to a dividend payout.
Still, with the US S&P 500 index within striking distance of a record high, analysts said there were few cues for global equities to pull back, with investors also disregarding US-China angst.
“There’s no stopping this market at the moment,” said Michael Baker, an analyst at ETX Capital.
“There’s not a lot negative sentiment (and) the market is fairly confident that a US stimulus deal will be reached even if it’s a last minute one.”
US Democrats and Republicans remain deadlocked after weeks of wrangling over a fifth coronavirus aid bill. President Donald Trump yesterday accused congressional Democrats of not wanting to negotiate because he was refusing to go along with “ridiculous” spending requests unrelated to the pandemic.
In Europe, the STOXX 600 is still about 14 per cent below its all-time high as data points to a slower-than-expected rebound from the pandemic. A survey today showed German companies expect business to return to normal in an average of 11 months, with the number even higher for firms in the services sector.
Struggling conglomerate Thyssenkrupp plunged 13.1 per cent after it said its steel unit would rack up €1 billion (RM4.9 billion) in operating losses this year, raising pressure to fix or sell the division. The stock is on course for its biggest one-day decline in three months.
Danish brewer Carlsberg slid 4.7 per cent on warning that lockdowns will impact sales in the second half of the year in its key markets of China and Western Europe.
TUI, the world’s largest tourism company, fell 3.0 per cent as it sunk to a €1.1 billion loss in the third quarter due to the Covid-19 pandemic. — Reuters
