European stocks lower as hopes for a bold rate cut fade
The European shares are trading lower this Tuesday, while reduced hopes for a fall in prices from the US Federal Reserve this month continue to dampen the investor's feelings.
The pan-European Stoxx 600 fell 0.7% in the morning meeting, chemical deposits fell 2.2% while autos and basic resources fell by more than 1.7% as the vast majority of sectors traded in negative territory.
European Markets: FTSE, GDAXI, FCHI, IBEX
Markets are struggling to sharpen sharply reduced expectations that the Fed will deliver a major price swing at the end of the month, following surprisingly strong US job growth in June.
Asian stocks continued to push Tuesday, led by Hong Kong's Hang Seng index, which fell 0.8%, leading Carrie Lam said the controversial extradition bill that triggered mass protests in the Asian financial hub "is dead".
In business news, Deutsche Bank workers began leaving offices in New York, London, Sydney and Tokyo Monday as G erman lender began cutting 1[ads1]8,000 jobs in a 7.4 billion euro restructuring. The bank's shares were further hammered when Wall Street reacted with skepticism to its long-term restoration plans, and continued on Tuesday with an additional 1.8% slide at the start of the session.
German chemical giant BASF on Monday warned that earnings will fall well below second-quarter forecasts, causing the company's stock to fall 6% on Tuesday morning and cause the Stoxx 600 chemical index to drop by more than 2%. The news has also affected Bayer's spin-off Covestro, which saw its 5.1% stake in early trading.
On Monday, Danske Bank turns its revenues for 2019 for the second time as a touch trade environment and higher costs for money laundering on the bankrupt bank. Danish shares fell 2.9% in early agreements.
The UK online store Ocado saw its stock rise 4.5% to the top of the European blue chip index after giving a safe view of its first half results.
International relations will also be the focus of investors after US President Donald Trump attacked British Prime Minister Theresa May and her Washington ambassador on Monday, having leaked confidential notes where the diplomat called Trump's administration "uniquely dysfunctional" and "inept" .
Meanwhile, Turkey continued agreement for Russian missile system despite US and NATO warnings. Turkey, a NATO partner, faces several implications for accepting the Kremlin missile system, including financial sanctions and removal from the F-35 supply chain, America's most expensive weapon system.
Sales at British dealers rose at their slowest pace of record over the past year as Brexit's concerns over consumers show a Tuesday survey, according to Reuters.
Average sales growth weakened to 0.6% in 12 months to June, British Retail Consortium, an industrial group, said, the slowest increase since it began its record in 1995.
