Stocks - Europe Retrace Gains as Trump Reminds Market of Trade Risks

By Peter Nurse

Investing.com - European stock markets came off highs Wednesday, as comments from U.S. President Donald Trump reminded traders of the risk of a new trade conflict with the EU, overshadowing the easing of fears about the spread of a new virus in China.

At 05:00 ET (1000 GMT), the DAX traded 17 points, or 0.1% higher, after initially surging to a new record high intraday. France's CAC 40 was flat, while the FTSE 100 in the U.K. gained 10 points, or 0.1%. The pan-eurozone Euro Stoxx 50 dropped 3 points, or 0.1%.

In an interview with CNBC at the World Economic Forum in Davos, Switzerland, President Trump reiterated the need to use tariffs in trade negotiations. This stance raises doubts a second-phase deal with China will be signed before Trump’s term ends in a year.

Earlier Wednesday, China’s public health officials confirmed more than 400 cases of the coronavirus illness, with the death toll rising to nine, but authorities in Beijing said the country will start a nationwide screening effort to tackle the outbreak.

In corporate news, Britain's Berkeley Group (LON:BKGH) jumped 6% to the top of STOXX 600 index as the housebuilder said it will increase its returns to shareholders by about 455 million pounds ($594 million) over the next two years.

Shares in Burberry (LON:BRBY) dropped 2% despite raising its guidance for the year after the luxury brand saw sales being hit by the disruptions in the key Hong Kong market.

Elsewhere, the price of oil has retreated after the International Energy Agency reiterated its forecast for a market surplus in the first half of the year.

"I see an abundance of energy supply in terms of oil and gas," head of the IEA, Fatih Birol, told the Reuters Global Markets Forum, while he was attending World Economic Forum meeting in Davos, Switzerland.

At 5:00 AM ET (1000 GMT), U.S. crude futures traded 0.9% lower at $57.87 and the international benchmark Brent contract fell 0.8% to $64.06. Gold futures for February delivery on New York’s COMEX was largely flat at $1,557.55.

Related Articles

Jaguar Land Rover to cut 10% of workforce at UK Halewood factory

Trump says middle class tax cut to be announced over next 90 days: Fox Business

Major 737 MAX buyer Air Lease remains confident in demand for jet