Europe Stocks Open Flat as Automakers Fall, Total Jumps on Deal
(Bloomberg) -- European equities opened little changed as automakers retreated on the lack of details regarding a potential trade deal and Total SA advanced after signing an agreement with Russia’s Novatek to buy 10 percent of the Arctic LNG 2 project.
The Stoxx Europe 600 Index was steady and retail, utilities and tech sectors also declined this morning. Total rose 0.5 percent.
Investors are eagerly awaiting more details on a possible U.S.-China trade pact and are weighing risks to the global economy after Asian nation lowered its goal for growth. European equities have staged a stellar rebound from last year’s slump this year, but some investors are starting to worry that the upside is limited without new positive developments.
“The trade deal may be largely priced in already and the upside is somewhat limited,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg in Frankfurt. “The extremely positive development since the beginning of the year is unlikely to continue in this form, as many political risks such as Brexit remain unresolved, the trade conflict between the U.S. and the EU could flare up and rates fears are likely to return as growth stabilizes."
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