Europe open: Shares flat with eyes on US debt ceiling; Dechra slumps
European shares were flat at the open on Monday as investors awaited the outcome of talks on the US debt ceiling and tensions between China and Washington over semi-conductors.
The pan-regional Stoxx 600 index had barely moved the needle in early trade, with major continental bourses mixed. With little corporate and economic news about, there was little to drive investor sentiment.
"It is a mixed start to trade across Europe with the FTSE 100 extending Friday’s gains, outperforming to log a slim gain. China-linked stocks like Burberry and Standard Chartered are at the top of the large-cap index following positive price action overnight from the Shanghai Composite and the Hang Seng," said Victoria Scholar, head of investment at Interactive Investor.
"As the US debt ceiling deadline draws closer, President Biden and House Republican speaker Kevin McCarthy are expected to hold further talks today following a phone call on Sunday as investors pray that a US default will be averted.
"Meanwhile US-Sino trade tensions are escalating after Beijing banned Micron Technologies from selling semiconductors to key industries in China, a move strongly opposed by Washington. Shares in Micron are trading lower by more than 5% in Frankfurt while the Hang Seng Technology index rallied sharply.
In equity news, Dechra shares slumped as the company issued a profit warning.
Ryanair made gains after the budget airline recovered to a near-record annual profit following a "strong" post-Covid recovery. BA and Iberia owner IAG and Wizz Air also rose.
Reporting by Frank Prenesti for Sharecast.com