Europe midday: Stocks struggle for impetus ahead of US open

European stocks were struggling for impetus at lunchtime on Wednesday as investors pondered US President Donald Trump’s sudden decision to end talks on a stimulus package.

The pan-European Stoxx 600 index was down 0.17% with all major bourses flat.

US Dow futures were up by 140 points, having risen 185 points earlier in the day, indicating that traders still expected a deal on stimulus to be done. Trump called for targeted measures, such as individual payments of $1,200.

His abrupt shut down of talks with Democrat leaders sparked heavy losses on Wall Street overnight. Trump said he would resume negotiations on relief measures to mitigate the coronavirus pandemic’s economic impact after the election next month.

“We should have seen a much deeper sell-off for the global markets, and the US futures should have tanked,” said Naeem Aslam at Avatrade.

“However, this isn’t the case as the US stock futures are actually trading in positive territory. The reason … is because investors know that whoever will win the US presidential election, another stimulus package is more likely to happen.”

AJ Bell investment director Russ Mould said there were hopes the stimulus plans could be revived in the period between the election and January’s inauguration “which are probably helping investors keep the news in perspective for now”.

In corporate news, Dialog Semiconductor shares were higher after the company forecast better-than-expected revenue in its third quarter.

UK supermarket chain Tesco also gained as it reported a jump in sales and forecast full-year retail operating profit to be at least the same level as 2019-20.

Italian payments firm Nexi fell more than 5% after major shareholder Mercury discounted a 13.4% stake in the company, just a day after Nexi announced a tie-up with rival SIA.