By Victor Reklaitis, MarketWatch
European stocks pulled back on Wednesday, with analysts yet again blaming the selling on global trade tensions.
What are markets doing?
The pan-European gauge is showing a decline of 2.8% for the year to date.
Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX -3.68% lost 0.7% to 12,131.62, while France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -4.23% gave up 0.7% to 5,307.60. The U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -5.25% shed 0.4% to 7,428.89.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.2603% bought $1.1561, down from $1.1583 late Tuesday in New York, while the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0241% traded at $1.2829, down from $1.2854.
What is driving the market?
Trade tensions between the U.S. and its partners have put pressure on global markets in recent months. The spotlight lately has been on the Trump administration’s stance toward Canada.
The U.S. and Canada are expected to resume negotiations Wednesday , after President Donald Trump tweeted over the U.S. holiday weekend that there is no overriding political imperative to include Canada in a revamped version of the North American Free Trade Agreement.
Investors also are worried about persistent troubles for emerging markets. Asian gauges fell sharply Wednesday as EM concerns weighed.
What are strategists saying?
“The main preoccupation for investors continues to be on whether the U.S. is serious about arriving at some form of deal with Canada over Nafta in the wake of President Trump’s tweets at the weekend,” said Michael Hewson, chief market analyst at CMC Markets UK, in a Wednesday note.
Shares in Bayer AG /zigman2/quotes/206842998/delayed XE:BAYN -2.07% /zigman2/quotes/210533053/delayed DE:BAYN -2.60% fell 3% after the drug and chemicals giant reported a drop in second-quarter earnings and cut its 2018 profit outlook. The German conglomerate also said that, as of Aug. 27, it faces around 8,700 lawsuits related to its Monsanto unit’s glyphosate weed-killer products, compared with around 8,000 at the end of July.
Shares in William Hill PLC /zigman2/quotes/201135907/delayed UK:WMH -8.06% gained 3% after the British gambling company agreed on a 25-year partnership in the U.S. with Eldorado Resorts Inc. /zigman2/quotes/205281174/lastsale ERI -9.83%
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