European Stocks Slide as Brexit Optimism Pulls FTSE 100 Lower
(Bloomberg) -- European stocks fell to the lowest level in a month amid mixed earnings reports, with the U.K.’s FTSE 100 hit by sterling’s strength on bets that a Brexit deal might be possible next month.The Stoxx Europe 600 Index closed down 1.3% in London. Travel, energy and construction sectors were among the biggest decliners. Unilever dropped 1.4% ahead of the consumer-goods company’s quarterly report on Thursday. Vinci SA fell 3.2% as analysts said the airports business remains a drag on the group. Ericsson jumped 9.6% after posting stronger-than-expected profit.European equities, stuck in a narrow range since early June, are facing a volatile end to the year from issues including rising Covid-19 cases, U.S. stimulus talks, the presidential election and Brexit. The FTSE 100 slipped 1.9% as the pound surged after Bloomberg reported that trade talks between the U.K. and the European Union are on the verge of resuming, and that negotiators have a goal of finding a deal by mid-November.“The spread of the virus in Europe and the response of governments is a clear weight on the market, whilst U.S. stimulus and election risks are to the fore,” said Neil Wilson, chief market analyst at Markets.com. “We’re also in the midst of an earnings season. And then we can throw Brexit into the mix -- lots of reasons to chop sideways for a while longer.”Among other notable movers, Centamin Plc plunged 19% after the miner cut its full-year gold production forecast. Vivendi SA rose 1.6% after revenue in the third quarter came ahead of expectations, driven by a recovery in its music streaming division.Exchange operator Euronext NV said some of the Monday trades sent Tuesday to clearing houses had the wrong buy/sell direction, in further fallout from the outage that shut trading for three hours on most of its European stock markets.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
