European stocks traded sharply lower on Wednesday, as political events on both sides of the Atlantic weigh on investor sentiment.
EUROPEAN MARKETS: FTSE, GDAXI, FCHI, IBEX
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE | VOLUME |
|---|---|---|---|---|---|---|
| FTSE | FTSE 100 | FTSE | 7233.52 | -57.91 | -0.79 | 193824446 |
| DAX | DAX | DAX | 12170.18 | -136.97 | -1.11 | 28183353 |
| CAC | CAC | CAC | 5545.59 | -82.74 | -1.47 | 32386180 |
The pan-European Stoxx 600 dropped 1.2% early in the session, with technology stocks falling 2.2% to lead losses as all sectors and major bourses traded in the red.
Market focus was largely attuned to news of a bid from Democrats in the U.S. House of Representatives to impeach President Donald Trump.
The impeachment inquiry was announced by House Speaker Nancy Pelosi on Tuesday, and follows concerns over Trump’s efforts to push Ukraine to investigate the family of Democratic presidential hopeful Joe Biden.
In Asia, markets closed lower Wednesday as traders monitored U.S. political developments and tougher tones from the Washington and Beijing on trade. President Trump told the United Nations General Assembly on Tuesday that he would not accept a “bad deal” in trade negotiations, while China’s top diplomat said Beijing would not be threatened or allow interference in its affairs.
Back in Europe, Brexit uncertainty continues to cloud markets. U.K. Prime Minister Boris Johnson was dealt a serious defeat after Britain’s Supreme Court ruled his decision to suspend Parliament weeks ahead of Brexit was unlawful.
Johnson disagreed with the verdict and said he would take the U.K. out of the EU by an Oct. 31 deadline. He has faced increased calls from lawmakers to resign following the ruling. MPs will now reconvene in Parliament.
In corporate news, Thyssenkrupp’s board wants CEO Guido Kerkhoff to leave the company following multiple profit warnings and restructuring efforts. And German automakers are under renewed pressure, after Volkswagen executives were charged and Daimler fined in relation to a diesel emissions scandal.
Stocks on the move
French utility giant EDF slid 6.4% to the bottom of the Stoxx 600 in early trade after raising the estimated cost for a new plant in the U.K., followed by Anglo-German travel operator Tui, which fell 5.4% after reporting an earnings slump.
Austrian chipmaker AMS shed 4.5% amid an ongoing race to acquire Osram Licht.
At the top of the European blue chip index, British supermarket chain Sainsbury’s saw its shares rise by 2.6% after announcing the closure of over 100 stores in a bid to address falling profits.
Asset manager Investec climbed 2.4% as investors looked to capitalize on the relatively cheap stock following Tuesday’s fall due lower profit expectations.
BY CNBC NEWS
