European stocks start week lower as U.S.-China talks continue

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  • FTSE 100 falls slightly
  • Stoxx 600 0.1% lower
  • Asian markets end day higher

On Monday, European stocks fell slightly on the back of thin market volumes around the world. Investors’ concerns continued to focus on trade talks between China and the U.S.

Broad market sentiment is still wavering around the outcome of the U.S.-China talks in Beijing last week, which are set to continue this week in Washington.

President Trump has outlined his aim of agreeing on a comprehensive pact by a deadline of March 2, although this may be extended to encompass even wider-ranging issues that have put the two biggest economies in the world at loggerheads.

Oanada’s Craig Erlam commented: “An extension looks the most likely outcome, with 90 days just not enough time to reach a comprehensive deal.”

“Trump has indicated that he could support an extension despite claiming to like tariffs during his press conference on Friday, something that will comfort investors at a time when global growth concerns are posing a significant risk for markets,” he explained.

The European benchmark Stoxx 600 dipped by 0.1% in the opening hour of this week’s trading, while Germany’s DAX index fell 0.22%. This was also affected by losses from companies that are important to the index, such as Volkswagen AG, Siemens AG and Adidas AG.

While the Brexit issue still shows no sign of progress, Britain’s FTSE 100 drifted into the red during early trading, falling by 0.32%. However, Sterling climbed to reach 1.2908 against the dollar.

In Asia, the broadest measure of regional share prices, the MSCI Asia ex-Japan index, actually traded higher by the end of the day, up 0.9%. In Japan, the Nikkei 225 gained 1.82% and closed at 21,281.85 points, which marked a two-month high.

Brian Ducey

Brian graduated from Chaminade High School and the University Of Vermont Kalkin School Of Business with a concentration in Finance. He began his career with Knight Capital Markets, working his way to market maker. Brian later expanded his market repertoire, working with various sell-side research brokerage firms, such as Sidoti & Co., and William O’Neill & Co., as an Account Executive. With over 20 years-experience in the financial industry, Brian has built a unique perspective into “market intelligence” understanding an ability to read the tape and apply second level thinking in a fast paced environment. Brian also carried several market licenses, including the series 7, 24, 55, 65, and 63 licenses as well as previously passing The Connecticut Life and Health Insurance Exam