- Title: European shares flat amid intensifying trade tensions
- Date: 30th September 2019
- Summary: FRANKFURT, GERMANY (SEPTEMBER 30, 2019) (REUTERS) FLOOR AT FRANKFURT STOCK EXCHANGE TRADER DAX GRAPH TRADERS BOARD SHOWING DAX START AT 12,367.81 POINTS VARIOUS OF TRADERS VARIOUS OF BANK SHARES TRADERS IN DISCUSSION PAN ACROSS BOARD (SOUNDBITE) (German) HEAD OF SPECIALIST FLOOR EQUITIES AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING (on GENERAL OUTLOOK): "The problems continue to exist: geopolitically it's Brexit and of course the trade dispute. Domestically, the class action suit against VW and Commerzbank's restructuring in theory would make investors run away if it weren't for the expectations put into the good old ECB." VARIOUS OF TRADERS BOARD SHOWING DAX LOW OF 12,346.94 POINTS AT 09:05 A.M. (0705 GMT) (SOUNDBITE) (German) HEAD OF SPECIALIST FLOOR EQUITIES AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING (on TRADE): "The positions are hardened. The Chinese meanwhile have introduced counter measures such as a currency devaluation to make their products a little more attractive. What the Americans have done so far was very structured so the positions are hardened and I believe not much will change until the hot phase of Donald Trump's election campaign." VARIOUS OF TRADERS BOARD SHOWING DAX HIGH OF 12,373.46 POINTS (SOUNDBITE) (German) HEAD OF SPECIALIST FLOOR EQUITIES AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING (on TRUMP IMPEACHMENT EFFORT): "The Democrats have already moved a long way in this process and they can't really get out of this thing anymore without losing face. So it does indeed look like there will be an impeachment and markets view this very differently, at least in the United States because actually, Donald Trump did a lot of good for the markets." VARIOUS OF TRADERS VARIOUS OF VW SHARES (SOUNDBITE) (German) HEAD OF SPECIALIST FLOOR EQUITIES AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING (on VW): "The class action suit against VW preoccupies a lot of shareholders and investors. It's impossible to predict the outcome. This trial is a first, something that hasn't happened until now. In the United States, it's customary that those affected get together to sue a large company and ultimately, they are awarded billions. Something like it has never happened in Germany before and the laws here are completely different." BOARD SHOWING DAX LOSS OF 12.79 POINTS OR 0.1% TRADER DAX BOARD TRADERS FLOOR
- Embargoed: 14th October 2019 10:29
- Keywords: VW class action suit Brexit europe stocks frankfurt DAX donald trump trade dispute germany exchange shares
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA001AYULL71
- Aspect Ratio: 16:9
- Story Text: European shares were little changed on Monday as investors shrugged off fresh concerns about U.S.-China trade negotiations and looming U.S. tariffs on European imports.
A report on Friday said that the United States might limit Chinese company listings on its stock exchanges, fueling more U.S.-China trade angst ahead of critical negotiations next week.
"The positions are hardened. The Chinese meanwhile have introduced countermeasures such as a currency devaluation to make their products a little more attractive. What the Americans have done so far was very structured so the positions are hardened and I believe not much will change until the hot phase of Donald Trump's election campaign," equities specialist, Oliver Roth told Reuters TV.
Trade-sensitive technology shares were down 0.2%, after earlier leading declines on the pan-European STOXX 600 index.
After falling in early trading, the benchmark European index was up 0.1%.
Equity markets rallied in September on cues of monetary easing from the European Central Bank and the U.S. Federal Reserve, and on hopes of a resolution in an economically damaging U.S.-China trade war.
JPMorgan raised its rating on euro zone equities to "overweight" on Monday, saying the bloc's battered stocks have been under-owned and predicting an opportunity for them to bounce back.
The STOXX 600 index is set to close the month with a 3% rise, marking its third straight quarterly gain.
However, the pace of growth has slowed substantially from a 12% increase in the first quarter of the year as concerns linger about the health of the euro zone economy as well as the trade war.
All eyes are now on an announcement by the World Trade Organization (WTO), which is expected to grant the United States a record award allowing it to hit European imports with billions of dollars of tariffs in a long-running aircraft subsidy dispute.
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