EUROPE MARKETS: European Stocks End Lower On China Worries, LSE Stumbles
October 08 2019 - 12:27PM
Dow Jones News
By Steve Goldstein, MarketWatch
Banks felt the pain as European stocks ended lower on Tuesday,
as worries over U.S.-China trade talks continued to weigh on
sentiment.
The Stoxx Europe 600 slumped 1.1% to 378.71, with banks
including Banco Santander (SAN.MC) and BBVA (BBVA.MC) losing
ground.
The German DAX skidded 1.05% to 11970.20, the French CAC 40
tumbled 1.18% to 5456.62 and the U.K. FTSE 100 dropped 0.76% to
7143.15.
The U.S. on Monday announced a blacklist of a group of Chinese
tech companies that develop facial recognition and other artificial
intelligence technology that the U.S. says is being used to repress
China's Muslim minority groups.
"Ahead of Thursday's U.S.-China trade talks, the timing of this
may worry investors, as reducing the chances of even a partial
trade deal," said Paul Donovan, a UBS economist. Bloomberg also
reported the U.S. was considering restrictions on pension funds
wanting to invest in Chinese securities.
The U.S.-China trade war has had a negative impact on Europe,
particularly export-oriented countries like Germany.
Of stocks in the spotlight, Qiagen (QGEN) shares stumbled 21% as
the diagnostics firm warned on third-quarter sales, announced the
suspension of some development activities, said its CEO was leaving
and announced a charge of as much as $265 million.
"There is much for the market to digest this morning and the
shares will be in for a bumpy ride," said Scott Bardo, an analyst
at Berenberg who nonetheless says the firm is a buy. Bardo says it
will either regroup or be acquired by a rival.
London Stock Exchange Group (LSE.LN) shares stumbled 6% after
Hong Kong Exchanges & Clearing (0388.HK) ended its attempts to
buy the LSE. It now needs to wait six months if it wants to bid
again. The LSE had said it was opposed to the offer.
EasyJet (EZJ.LN) shares ran into profit taking, falling 7.6%,
after announcing full-year profits would be at the top end of
expectations, second-half revenue per seat would be above guidance
and fiscal first-quarter bookings were in line with last year. The
stock is still up over 10% during the last three months.
(END) Dow Jones Newswires
October 08, 2019 12:12 ET (16:12 GMT)
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