Europe’s main stock benchmarks were little changed early Tuesday, as analysts noted a lack of fresh trade-related flare-ups, but still sounded wary.
What are markets doing?
The Stoxx Europe 600 SXXP, +0.02% recently was up less than 0.1% to 382.81, after rising by less than 0.1% in Monday’s session.
The pan-European gauge is showing a fall of 1.6% for the year to date.
Germany’s DAX 30 DAX, -0.15% was roughly flat at 12,342.90, while France’s CAC 40 PX1, -0.28% declined by 0.2% to 5,404.97. The U.K.’s FTSE 100 UKX, +0.07% edged up by 0.1% to 7,511.29.
The euro EURUSD, -0.4819% traded at $1.1565, down from $1.1620 late Monday in New York, while the pound GBPUSD, -0.3807% changed hands at $1.2826, down from $1.2871.
What is driving the market?
Trade tensions between the U.S. and its partners have put pressure on global markets in recent months. The spotlight lately has been on the Trump administration’s stance toward Canada.
The U.S. and Canada are expected to resume negotiations Wednesday, after President Donald Trump tweeted over the U.S. holiday weekend that there is no overriding political imperative to include Canada in a revamped version of the North American Free Trade Agreement.
Investors are also worried that Italy’s government could announce a budget this fall that puts the country’s debt on an unsustainable course and so amplify tensions with the European Union. They say that’s curbing buying appetite for European equities.
What are strategists saying?
“The respite from any bearish trade-related headlines seems to allow for some positivity in the markets,” said Konstantinos Anthis, head of research at ADS Securities, in a note Tuesday.
“Investors are still worried about the lack of progress in the U.S.-China trade talks,” Anthis also said.
Stock movers
Shares in French reinsurer Scor SE SCR, +7.81% jumped 7% to around 44 euros for the Stoxx Europe 600’s largest gain. That followed news that Covea, a privately held French insurance company, offered to pay 43 euros per share for Scor, but was turned down.
WPP PLC’s stock WPP, -7.48% fell 8% for the Stoxx 600’s biggest drop. The advertising giant reported its first quarter of like-for-like net sales growth in more than a year, but forecast a decline in the full year for a key profit-margin figure. The results come a day after WPP named company veteran Mark Read as its new CEO.
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