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Sept. 5, 2018, 3:34 a.m. EDT

European stocks drop as trade worries persist

Analyst: Investors focus on ‘whether the U.S. is serious about arriving at some form of deal with Canada’

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By Victor Reklaitis, MarketWatch


Getty Images
This view of Berlin’s skyline shows Alexanderplatz’s TV tower.

European stocks pulled back on Wednesday, with analysts yet again blaming the selling on global trade tensions.

What are markets doing?

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -3.26%  fell 0.4% to 378.19, after dropping 0.7% in Tuesday’s session.

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.

Stock movers

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%  

Click to Play

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Some 70% of the $5 trillion global ETF market resides on U.S. markets, but ETFs are on offer on 70 exchanges in 57 countries. In fact, the history of exchange-traded funds begins in Canada.

/zigman2/quotes/210599654/delayed
XX : STOXX
310.90
-10.48 -3.26%
Volume: 0.00
March 27, 2020 5:50p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
9,632.52
-368.44 -3.68%
Volume: 110,083
March 27, 2020 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,351.49
-192.09 -4.23%
Volume: 90,180
March 27, 2020 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
5,510.33
-305.40 -5.25%
Volume: 834,872
March 27, 2020 4:45p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1169
+0.0029 +0.2603%
Volume: 0.0000
March 27, 2020 4:59p
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.2455
+0.0003 +0.0241%
Volume: 0.0000
March 27, 2020 4:59p
loading...
/zigman2/quotes/206842998/delayed
XE : Germany: Xetra
50.67
-1.07 -2.07%
Volume: 4.79M
March 27, 2020 6:30p
P/E Ratio
12.15
Dividend Yield
5.53%
Market Cap
€49.78 billion
Rev. per Employee
€338,348
loading...
/zigman2/quotes/210533053/delayed
DE : Germany: Frankfurt
50.89
-1.36 -2.60%
Volume: 16,975
March 27, 2020 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€338,348
loading...
/zigman2/quotes/201135907/delayed
UK : U.K.: London
64.36 p
-5.64 -8.06%
Volume: 9.22M
March 27, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
4.13%
Market Cap
£562.28 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/205281174/lastsale
US : U.S.: Nasdaq
$ 15.14
-1.65 -9.83%
Volume: 4.23M
March 27, 2020 4:00p
P/E Ratio
14.71
Dividend Yield
N/A
Market Cap
$1.18 billion
Rev. per Employee
$109,947
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Victor Reklaitis is a London-based markets writer for MarketWatch. Follow him on Twitter @VicRek.

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