European Gains Fizzle Out After Weak U.S. Data on Volatile Day
(Bloomberg) -- European stocks reversed gains in afternoon trading, with energy and mining shares leading losses, after U.S. consumer confidence data for August disappointed the market.
The Stoxx Europe 600 Index closed down 0.3% in London after gaining as much as 0.9% earlier as the U.S. and China reaffirmed their commitment to the phase-one trade deal in a biannual review. Oil stocks and miners each fell 1.3% or more, while travel and leisure shares rose the most among industry groups.
European stocks have been largely rangebound since early June, after a sharp rebound from the sell-off through March. Trade tensions and worries about rising coronavirus cases have tempered optimism about an economic recovery. The Stoxx 600 on Tuesday once again tested its 200-day moving average, which it has struggled to clear decisively since July.
The Stoxx 600 Chemicals Index briefly rose to an all-time high, erasing its pandemic-spurred losses, before turning lower in the afternoon.
Among notable movers, Aveva Group Plc jumped 7.3% after agreeing to buy SoftBank Group Corp.-backed Osisoft in a $5 billion deal.
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