Europe midday: Shares lower as China rally runs out of steam
European shares were lower on Tuesday as another China-inspired rally fizzled out after optimism around further stimulus for the world’s second-largest economy was tempered by downbeat trade data.
The pan-regional Stoxx 600 index was down 0.10% to 520.7 in early deals. Chinese officials on Monday pledged to ramp up stimulus measure to spur growth next year after a weak inflation readout.
However, the latest trade data showed a rapid slowdown in exports during November, while imports unexpectedly contracted.
Elsewhere, German inflation was confirmed at 2.2% last month, marking a rise from October’s 2%.
Energy prices fell by 3.7% compared with the previous year, while food prices rose by 1.8% year-on-year in November.
"A downbeat start to the session in Europe has seen a sea of red in early trade, feeding off a mixed Asian session that saw Monday’s China-led stock market surge fade somewhat. However, ultimately it has been the influence of US equities which have played the most important role, with the Trump-trade showing signs of instability after a bumper post-election month," said Scopemarkets analyst Joshua Mahony.
In equity news, shares in Ashtead plunged as the equipment hire group warned on profits and said it was moving its listing to the US.
Westfield mall owner Unibail-Rodamo-Westfield fell after a shareholder sold shares in a secondary accelerated bookbuild.
TeamViewer tanked as the remote-working software maker said it was buying Carlyle-backed 1E for $720m.
Reporting by Frank Prenesti for Sharecast.com