European Stocks Muted as US-China Talks Carry On for Second Day
European stocks were subdued, with investors reluctant to make big bets ahead of a second day of trade negotiations between the US and China.
The Stoxx Europe 600 Index was little changed at 8:16 a.m. in London. Novo Nordisk A/S rose as much as 2.4% after a report said activist hedge fund Parvus Asset Management was building a stake in the drugmaker. The energy and health care sectors were leading gains, while financial services stocks were among the biggest laggards.
A rebound in European stocks has slowed this month as investors look for more progress in US trade negotiations. Talks between Washington and Beijing are set to continue in London as the two sides look to ease tensions over shipments of technology and rare earth elements.
Mark Taylor, director of sales trading at Panmure Liberum, said weakening sentiment suggests bets on a breakthrough in negotiations “may be misplaced.” “Expect a lot of twitchy trading today until some clarity is provided,” he said. “I suspect even baby steps will be taken well.”
Meanwhile, data from Citigroup Inc. showed positioning in European equities has been relatively subdued in recent weeks, with bullish levels in Germany’s DAX index remaining largely unchanged.
The export-heavy FTSE 100 edged higher as the pound weakened after figures showed UK wages grew at the slowest pace for seven months and employment plunged. The large-cap benchmark is close to reclaiming its March record high, although it has trailed broader European peers this year.
Source : Bloomberg
