European Stocks Open Steady as Automakers Slump Amid Trade Woes
(Bloomberg) -- European equities were little changed at the open, while automakers fell again amid U.S.-China trade spat and as investors eyed the U.S. Federal Reserve meeting, which is expected to bring another rate hike.
The Stoxx Europe 600 Index was up less than 0.1 percent. Volkswagen retreated 1.9 percent, BMW dropped 2 percent. BMW cut its profit forecast on Tuesday, becoming the latest carmaker to succumb to pressures ranging from trade wars to scrutiny on emissions.
Trade concerns continue to be at the fore of investors’ minds as President Donald Trump told the United Nations that the trade deficit with China “is just not acceptable,” in a reminder of deepening trade tensions. Traders will also be watching the U.S. Federal Reserve’s policy meeting, which will likely bring the year’s third interest-rate increase.
“The biggest things going for European equities are cheap financing and continued loose monetary policy, whereas we’ll see continued tightening in the U.S.,” said John Roe, head of multi-asset funds at Legal & General Investment Management in London.
©2018 Bloomberg L.P.