EUROPE MARKETS: European Markets Down, As Trade Truce Between U.S. And China Questioned

By Emily Horton

Airlines under pressure

European markets slipped Tuesday, as questions were raised over the endurance of the temporary trade agreement between U.S. and Chinese officials at the G-20 last weekend.

How are the markets performing?

The Stoxx Europe 600 fell 0.4% to 359.57, after ending up 1% on Monday.

The German DAX (DAX) fell 0.6% to 11,395.70, while the French CAC dropped by 0.4% to 5,031.45. The FTSE 100 (0100.HK) fell 0.4% to 7,033.58.

The British pound climbed to $1.2777 from $1.2723 late in New York on Monday and the euro rose to $1.1395, from $1.1354.

What is driving stocks?

Although the overall impact of the trade truce between the U.S. and China remains positive, questions over what was actually agreed this weekend have been raised. For example, President Donald Trump's claim that China will remove tariffs on U.S. autos doesn't appear to feature in the declaration that was agreed by both sides over the weekend.

Meanwhile, sterling took off Tuesday after the advocate-general of the European Court of Justice said the U.K. could overturn its Brexit decision (http://www.marketwatch.com/story/european-court-official-says-uk-can-unilaterally-overturn-brexit-2018-12-04) without asking for permission from other E.U. member states. A debate over Prime Minister Theresa May's Brexit deal begins Tuesday, with a vote expected Dec. 11.

What other stocks are active?

Pharmaceutical stocks were among the biggest climbers with GlaxoSmithKline PLC (GSK.LN) rising by 0.6% and Sanofi S.A. (SAN.FR) up 1.6%.

European airline stocks were under pressure, with Air France-KLM (AF.FR) falling by almost 5% and Deutsche Lufthansa AG (LHA.XE) dropping by just over 4%.

Banking stocks were down with HSBC Holdings PLC (HSBA.LN) falling by 1%.

(END) Dow Jones Newswires

December 04, 2018 09:23 ET (14:23 GMT)

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