European markets closed lower on Wednesday as stocks failed to capitalize on an earlier rebound as economic and political worries continued to weigh.
What are markets doing?
The Stoxx Europe 600 SXXP, -0.60% dropped 2.2% to 362.27 and the Germany’s DAX 30 DAX, -0.52% shed 0.5 to 11,412.53, while France’s CAC 40 PX1, -0.65% fell 0.7% to 5,068.85. The U.K.’s FTSE 100 UKX, -0.28% slid 0.3% to 7,033.79, moving back and forth across the flat line owing to sterling action.
The euro EURUSD, +0.0442% traded at $1.1314, while the pound GBPUSD, +0.0231% fell to $1.2997, compared with $1.2969 late Tuesday in New York.
What drove the market?
A turnaround for oil helped to lift global stocks, with prices rebounding after a record-setting 12- straight sessions of losses but stabilizing oil were offset by weak growth data from Germany and mixed economic updates from China.
Italy was in the spotlight after the government told the European Union it will forge ahead with its pricey fiscal plans despite calls from the bloc’s authorities to revise its draft budget for next year.
And the U.K. was in focus after Prime Minister Theresa May secured cabinet support for a Brexit proposal she had ironed out with the bloc.
With the approval of the deal, a summit of European Union leaders could be called for later this month, with a vote in parliament in the lead up to Christmas.
Read: Currency traders betting on a Brexit deal are having a rough time
Stock movers
As crude oil CLZ8, -0.43% moved higher, BP PLC BP, +1.31% BP., -0.27% and France’s Total SA TOT, +2.02% FP, +0.30% rose sharply.
Dutch payments firm Adyen NV ADYEN, -9.45% slid nearly 10% on reports it was squeezed out after an MSCI index reweighting. Rival Wirecard AG WDI, -4.75% slid over 4% even as it lifted guidance over higher transaction volume.
—Sue Chang contributed to this report
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