(Reuters) – European shares inched lower on Wednesday as weak bank earnings and doubts over an interim U.S.-China trade deal spurred selling, although losses were limited by excitement over merger talks between Fiat Chrysler (FCHA.MI) and France\u2019s PSA (PEUP.PA).<\/p>\n
By 0930 GMT, the pan-European STOXX 600 index was down just 0.1%, with banks .SX7P leading losses after disappointing results from some of the region\u2019s top lenders.<\/p>\n
Deutsche Bank (DBKGn.DE) fell 6%, putting it at the bottom of the benchmark index, as it reported a loss for the second consecutive quarter due to the costs of its wide-ranging global restructuring.<\/p>\n
\u201cThe losses were massive, so it\u2019s no surprise that investors aren\u2019t too happy,\u201d said Connor Campbell, financial analyst at Spreadex. \u201cEven though the CFO\u2019s tried to say that earnings are a little bit better than in the interim planning, it\u2019s enough to spook investors.\u201d<\/p>\n
The euro zone\u2019s biggest lender, Santander, (SAN.MC) slid 2% as net profit fell 75% due to one-off charges in the UK, while Swiss lender Credit Suisse (CSGN.S) lost over 3% after issuing a cautious 2020 outlook.<\/p>\n
Expectations had been low going into the European corporate earnings season, and after three weeks the overall picture has proved better than expected, with most companies modestly beating estimates.<\/p>\n
Trade-sensitive tech .SX8P and commodity-linked stocks .SXPP took a hit on Wednesday as concerns over the U.S.-China trade pact resurfaced after a U.S. administration official told Reuters the deal might not be completed in time for the leaders of the two countries to sign in Chile next month.<\/p>\n
MERGER TALKS DRIVE AUTOS<\/p>\n
Auto stocks .SXAP hit their highest level in nearly six months after Italian-American carmaker Fiat Chrysler (FCHA.MI) confirmed it was in merger talks with French rival PSA (PEUP.PA) on a deal that would reshape the global industry.<\/p>\n
Shares of both companies rose between 7% and 8%, with Peugeot hitting an 11-year high. Shares in another French carmaker, Renault (RENA.PA), which was in talks with Fiat earlier this year about a similar deal, slid 3.5%.<\/p>\n
\u201cThe deal is geographically complementarily given FCA\u2019s strong hold in North America and PSA\u2019s footing in Asia and (the) rest of the world,\u201d Martino De Ambroggi, senior equities analyst at Equita, wrote in a note.<\/p>\n
Oslo-listed stocks .OSEAX got a boost from a near 2% rise in the world’s largest fish farming company Mowi (MOWI.OL) which plans to increase its production by 4.7% in 2020.<\/p>\n
All eyes will move later in the day to the U.S. Federal Reserve\u2019s latest announcement on interest rates, widely expected to cut borrowing costs for the third time this year and offer more signals on the path ahead.<\/p>\n
Egypt Today<\/p>\n","protected":false},"excerpt":{"rendered":"
(Reuters) – European shares inched lower on Wednesday as weak bank earnings and doubts over an interim U.S.-China trade deal spurred selling, although losses were limited by excitement over merger talks between Fiat Chrysler (FCHA.MI) and France\u2019s PSA (PEUP.PA). By 0930 GMT, the pan-European STOXX 600 index was down just 0.1%, with banks .SX7P leading […]<\/p>\n","protected":false},"author":40,"featured_media":149630,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7863],"tags":[51367,2484,51364,51368,51365,51366],"class_list":["post-149629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english-section","tag-csgn-s","tag-egypt","tag-fcha-mi","tag-stoxx","tag-sx8p","tag-sxpp"],"yoast_head":"\n