European stock markets traded mostly lower on Thursday as Brent crude futures remained above $100 a barrel, while investors assessed interest-rate expectations and the forthcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
France’s CAC 40 was down 0.3%, while Germany’s DAX declined 0.2%. The UK’s FTSE 100 moved in the opposite direction, gaining 0.1%.
Oil prices remained a focus for markets amid continuing tensions in the Middle East. Expectations for U.S. monetary policy were also in focus following Federal Reserve commentary and recent economic data.
Trump and Xi Meeting in Washington
Trump and Xi are due to hold talks at the White House on Thursday, with trade, artificial intelligence and critical minerals among the issues expected to be discussed. The meeting comes during Xi’s visit to Washington and amid ongoing negotiations between the United States and China.
Ahead of the meeting, U.S. Treasury Secretary Scott Bessent said the two countries had agreed to extend their trade truce by two months. The agreement, previously due to expire on November 10, will now run until January 10, providing additional time for negotiations over a broader economic arrangement.
The extension postpones the scheduled expiry of the existing tariff truce but does not by itself establish that the two governments will reach a broader trade agreement.
European Automakers Move Lower
Mercedes-Benz (LSE:MBG) shares moved lower following reports that the automaker plans to reduce labour costs in Germany by €800 million.
Renault (EU:RNO), Volkswagen (LSE:VOW3) and BMW (TG:BMW) also declined despite EU new passenger-car registrations increasing 4.5% year-on-year in August.
The information supplied does not establish that the latest registration figures were the sole factor affecting individual automaker shares.
Carbios and H&M Shares Decline
French biotechnology company Carbios (EU:ALCRB) fell after reporting a first-half net loss of €9.43 million.
Swedish fashion retailer H&M also declined despite reporting a larger-than-expected increase in third-quarter operating profit.
Johnson Matthey (LSE:JMAT) traded lower after the British speciality chemicals and sustainable technologies company announced plans to begin a share repurchase programme with a maximum consideration of £200 million.
Shelly Group Rises on Schneider Electric Bid Plans
Shelly Group (TG:SLYG) shares advanced after Schneider Electric (EU:SU) announced plans to launch a €1.2 billion ($1.4 billion) offer to acquire the Bulgarian smart-home device company.
The proposed transaction remains subject to the terms and completion conditions associated with the acquisition process.
Overall, European equities were mostly lower during Thursday’s session, with energy prices, interest-rate expectations, corporate developments and the U.S.-China talks among the issues being monitored by investors.
Leave a Reply