Europe midday: Markets mixed amid Sino-US trade speculation; Fed in focus
By Duncan Ferris
Date: Wednesday 11 Dec 2019
(Sharecast News) - European stocks were mixed at lunchtime on Wednesday amid reports that the US could push back planned tariffs on Chinese imports.
At 1156 GMT, the Stoxx 600 was 0.1% lower at 405.82, as Germany's Dax rose by 0.3% to 13,108.41 and the French CAC 40 dropped by 0.1% to 5,841.66. Meanwhile, London's FTSE 100 was down by 0.1% at 7,210.38.
The Wall Street Journal on Tuesday reported that Washington is likely to delay its planned tariffs on more than $150bn of Chinese goods beyond the Sunday deadline as the two sides look to secure a phase one trade deal.
Oanda analyst Craig Erlam said a delay has looked the most likely outcome for a while, though he added that the reports have still caused investors to breathe "a collective sigh of relief" as the imposition of new duties could have interfered with ongoing trade discussions.
The US Federal Reserve is also being watched closely, with the central bank set to make a new policy announcement after European markets close.
IG analyst Chris Beauchamp said: "The key for Powell tonight will be trying to avoid any further flak from the White House, but with job numbers growing, and wages rising (albeit not too quickly), the Fed finds itself in a much more pleasant position than a year ago.
"Recession fears have been banished in the US, and the Fed's quick policy turnaround earlier this year played a significant part, hence the continued strength of the US dollar."
Among individual stocks, Credit Suisse fell after downgrading profitability targets for this year and the next.
Telefonica Deutschland dropped after slashing its dividend in favour of further investment in network upgrades over the next three years.
Wirecard was also in the red after the Financial Times reported that a former Libyan intelligence chief, who claims to be a shareholder in the German payments business, has had the company's critics monitored. The Munich-based company has denied any involvement.
Inditex rose after the Spanish retailer remained confident in full year expectations following a jump in net profit in the first nine months.
K+S climbed after the German salt and potash miner said it was contemplating selling stakes in some of its North American operations in order to reduce debt.
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