Europe open: Shares lower with eyes on Fed, US-Sino trade talks
By Frank Prenesti
Date: Wednesday 07 May 2025
(Sharecast News) - European shares fell at the open on Wednesday as investors digested the latest moves in US-China trade talks and awaited an interest rate decision from the Federal Reserve.
The pan-regional Stoxx 600 index was down 0.36% in early deals. Germany's DAX was flat after bigger-than-expected a jump in factory orders in March.
Orders rose by 3.6% between February and March, according to the federal statistics office, beating analysts' expectations of a 1.3% increase. Without major orders, demand was up by 3.2%.
US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's top economic official in Switzerland this weekend for talks amid the ongoing trade war between the world's biggest economies.
'Concerns about how Trump's tariff wars will play out are still causing jitters, even though the door is open to a deal with China, with talks scheduled for this weekend," said Hargreaves Lansdown analyst Susannah Streeter.
"China is aiming to bolster its resilience and ability to withstand trade turmoil by unveiling a range of stimulus measures. It's being seen as tactical positioning to try and give its negotiator a firmer hand in discussions with US Treasury Secretary Scott Bessent in Switzerland."
In equity news, Novo Nordisk rose after the anti-obesity drugmaker beat forecast with its first-quarter operating profit, although it cut its full-year sales and profit outlook amid weak US prescription data.
Danish medical equipment maker Ambu fell 11% after reporting second-quarter sales and earnings below expectations.
Reporting by Frank Prenesti for Sharecast.com
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