European stocks slipped Wednesday, with global trade concerns still hovering over markets, as China readies tariffs on the U.S. and the EU looks at mustering big auto-making countries to agree a new trade deal.
How markets are movingThe Stoxx Europe 600 index SXXP, +0.15% � was off 0.1% at 379.30, paced by losses for the industrial and consumer services sector. But the telecom and utility groups moved higher, as financials notched a small gain. The pan-European index on Tuesday rose 0.8%.
Trading volumes are expected to be lighter than usual because U.S. financial markets are closed for the Independence Day holiday.
Germany��s DAX 30 index DAX, -0.07% �shed 0.3% to 12,312.07, and France��s CAC 40 index PX1, +0.27% was fractionally lower at 5,315.99.
The U.K.��s FTSE 100 index UKX, -0.25% �fell 0.3% to 7,572.11, while Spain��s IBEX 35 IBEX, +0.63% �picked up 0.3% to 9,685.30, adding to Tuesday��s jump of 1.1%.
The euro EURUSD, -0.1715% traded at $1.1665, little changed from $1.1661 late Tuesday in New York.
What��s driving the marketTrading volumes are expected to be lighter than usual, because U.S. financial markets are closed for the Independence Day holiday. In addition, traders are turning some focus to the monthly U.S. jobs report, due Friday.
Even so, the impact of U.S. President Trump��s campaign to correct what he considers unfair trade conditions with its trading partners continues to reverberate worldwide.
China is expected to begin imposing tariffs on $34 billion of U.S. goods on Friday, and the Trump administration��s tariffs on up to $50 billion in Chinese imports are due to take effect the same day. However, Beijing��s tariffs will kick in 12 hours sooner due to the time difference.
Meanwhile, European Union officials are weighing up the idea of talks with the big auto-making countries, to come up with a plurilateral deal to cut auto tariffs, the Financial Times reported Wednesday. Such a move could help stave off an all-out trade war. President Donald Trump has said the threat of global auto tariffs is his biggest weapon in extracting concessions from trading partners.
Don��t miss: How Trump��s European auto tariff proposal could backfire
At the same time, China is pushing for the European Union to join forces against Trump��s trade policies at summit next weekend in Beijing, according to a Reuters report.
German political crisisLeaders from the Social Democrats (SPD) are still reportedly considering whether to support a deal for tighter control over immigration agreed by German Chancellor Angela Merkel and her Interior Minister Horst Seehofer late Monday. A dispute on the issue had threatened to bring down the country��s coalition government, and the agreement is seen as easing the threat.
The three coalition parties �� the SPD, Merkel��s Christian Democrats (CDU) and Seehofer��s Christian Social Union (CSU) �� are expected to continue talks on Thursday.
Check out: Why Merkel��s immigration deal isn��t as good as it seems
What strategists are saying��Financial markets are set to pause for breath on Wednesday, with the U.S. off for Independence Day and traders take stock ahead of nonfarm payrolls on Friday. There is still an underlying concern over global trade tensions, but for now there is a degree of consolidation setting in,�� said Richard Perry, market analyst at Hantec Markets, in a note.
Stock moversJ Sainsbury PLC shares SBRY, +1.79% �picked up 1.4% after Britain��s second-largest grocer said it��s agreed to a financing package of 拢3.50 billion ($4.61 billion) for its proposed merger with Asda. Like-for-like sales in the first-quarter rose 0.2%, but that was slower than the 0.9% rate logged in the fourth quarter.
ThyssenKrupp TKA, +1.10% �rose 1.2% following a ratings upgrade at UBS to buy from neutral, which said the signing of a letter of intent to form a joint venture with Tata Steel 500470, +1.53% �opens the door for roughly 50% upside to fair value.
Vifor Pharma AG VIFN, +6.37% �topped advancers on the Stoxx 600 by rising 4.5%, while silicon wafer company Siltronic AG WAF, -5.18% � led decliners as its shares fell 5.3%.
Economic docketThe final reading on services-sector activity in the eurozone in June came in at 54.9 from IHS Markit. The flash PMI figure was 54.8. Reading above 50 indicate expansion.
Rates of expansion in business activity, new orders and employment accelerated, while business optimism ticked higher for the first time in four months,�� said IHS Makit in a statement.
The U.K.��s services PMI was 55.1 in June, an 8-month high that surpassed the FactSet estimate of 54.0.
Carla Mozee Carla Moz茅e is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee.
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Comment Related Topics European Markets Europe Investing Stocks European Central Bank Quote References SXXP +0.56 +0.15% DAX -8.95 -0.07% PX1 +14.37 +0.27% UKX -18.83 -0.25% IBEX +60.90 +0.63% EURUSD -0.0020 -0.1715% SBRY +5.70 +1.79% TKA +0.23 +1.10% 500470 +8.55 +1.53% VIFN +10.15 +6.37% WAF -6.40 -5.18% Show all references MarketWatch Partner Center Most Popular
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