Europe midday: Stocks dip as enthusiam over Trump's policies wanes

European stocks slipped, with investors pausing for breath as recent enthusiasm over Trump’s growth policies receded.

At midday, the benchmark Stoxx Europe 600 was down 0.05%, France’s CAC40 was off 0.40% and Germany’s DAX was 0.36% lower.

Market Analyst at IG Joshua Mahony said: “We are seeing some respite from the recent risk-on shift, which saw gains for stocks and the dollar at the expense of the yen, gold and Treasuries. There is a clear distinction between US and European markets, as the Trump-fuelled excitement evident over the pond is perhaps somewhat lost closer to home. There is a feeling that the focus upon monetary policy stimulus is now being overtaken by excitement of what a sharp fiscal boost could mean for stocks and US growth.”

Oil prices also took a hit, with Brent crude dropping 1.09% to $46.44 per barrel and West texas Intermediate falling 1.48% to $45.14. The head of the International Energy Agency said on Wednesday that global oil demand won’t peak before 2040 despite promises made at the climate change summit in Paris last year to cap greenhouse gas emissions.

In corporate news, Bouygues gained ground as the French conglomerate’s net profit for the first nine months of the year beat expectations.

German payments processor Wirecard rallied after it released guidance for next year, while Dutch insurer Delta Lloyd pushed higher after saying it was on track for its cost-cutting programme and lifting its savings estimates for 2018.

French Telecoms company Iliad advanced after it reported a 6.5% rise in revenues to €1.2bn due to more subscriber wins.

ABN Amro slid after it announced plans to shed another 1,500 jobs in the coming years with the aim of reducing costs and directing investment to digital services. The bank also reported a solid third-quarter performance with net profit rising 19% to €607m reflecting lower loan-loss provisions and higher net interest income.

Insurer Prudential ticked higher after reporting a 19% jump in new business profit in the first nine months of the year and saying it plans to boost its dividend by 5% a year.

Rolls-Royce retreated following earlier gains after saying its outlook for 2016 remained unchanged for revenue, profit and cash. The aerospace and defence company said it would benefit from weaker sterling and life cycle cost reductions which would more than offset higher engineering and programme costs in its civil aerospace unit.

Housebuilder Barratt Developments ticked lower after saying in a trading update that sales in July had risen by 4.3% but cautioning that the housing market was becoming more challenging.

Peer British Land also nudged lower as it posted higher profits for the first half of the year but said it expects to proceeds more cautiously in property development as it noted a change in the behaviour of property markets since the Brexit vote.