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Europe open: Stocks unchanged as Washington and Beijing dig in for long talks

By Alexander Bueso

Date: Wednesday 17 Jul 2019

Europe open: Stocks unchanged as Washington and Beijing dig in for long talks

(Sharecast News) - Stocks across the Continent were little changed in early trading, recovering from an early dip on the back of possible signs that Washington and Beijing might be digging in for a protracted stand-off.
Overnight, the US President said there was still a long way to go to reach a deal with Beijing, even as China's commerce minister, Zhong Shan, replied from the other side of the Pacific, reportedly telling the South China Morning Post that the country must uphold "the spirit of struggle" in order to defend its national interests.

Commenting on the price action in financial markets in the first few hours of trading, IG's Josh Mahony said: "There are precious few signs that any progress is being made [in US-China trade talks], and thus we have seen the focus shift onto the Fed (last week) and now earnings."

Mahony also noted how the euro had stopped its slide, robbing stocks of that support.

As of 1030 BST, the benchmark Stoxx 600 was adding 0.06% to 389.23, while the German Dax was edging up by 0.03% to 12,434.87 and the FTSE Mibtel was down by 0,.07% to 22,187.61.

And in parallel, euro/dollar was little changed, rising 0.06% to 1.12175.

Autos&Parts was one of the weakest segments of the market after the EAMA reported a 7.8% drop in new car registration for the month of June, although the business lobby group attributed the decline to negative calendar effects. Some analysts appeared to agree, labelling the underlying trend in Eurozone sales volumes for the year-to-date as "strong", although when adjusted for prices sales had stalled.

Meanwhile, Eurostat reported only modest 0.3% month-on-month drop in euro area construction output for May, but sharp downwards revisions to the figures for April meant that the sector "hit a wall" in the second quarter, analysts said.

A reading on euro area consumer prices for June on the other hand was revised higher by Eurostat to show a 1.3% rate of increase in headline consumer prices, versus a 1.2% gain in the month before.

Stock in Swedbank were getting hammered after the Nordic lender lowered its payout policy from 75% of annual profits to 50% and boosted the level of capital that it was targeting by 100-130 basis points.

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