Markets in Europe closed in the red on Wednesday as investors monitor new developments surrounding Britain’s exit from the European Union. Earlier, the legal advice on Brexit stated the UK may "become subject to protracted and repeating rounds of negotiations."
In trade, concerns continue to linger despite the United States and China agreeing to temporarily halt the imposing of additional tariffs. However, Beijing blasted Washington for publicly speaking about concessions China agreed to make.
Apart from a substantial sell off of the European stocks, also conventional safe havens like gold, silver and German Sovereign debt took a hit. Meanwhile Italian bonds diverged, jumping on insider news that the government would amend its budget to appease the European Union, which is preparing sanctions for excessive spending.
On the currency side, the euro’s performance against major peers was mixed at the end of the workday, while exchanges in the United States were closed for the state funeral of former United States President George W. H. Bush.
The DAX lost 1.19% as internet company Wirecard dropped 2.67%. Meanwhile, the CAC 40 dove 1.36% with TechnipFMC sank 3.47%, followed by Peugeot tanking 3.44%. In London, the FTSE 100 fell 1.44% at the end of trading; Ashtead Group plunged 5.83% as the worst performer.
EU’s Verhofstadt urges German carmakers to work with European Commission
Member of the European Parliament and the leader of the Group of the Alliance of Liberals and Democrats for Europe (ALDE), Guy Verhofstadt urged German carmakers to work in unity with the European Commission in order to fight against protectionist policies of the United States President Donald Trump. "I understand German carmakers’ huge concerns”.
Verhofstadt’s comments come a day after chief executives of leading German automakers BMW, Volkswagen and Daimler met with US President Donald Trump at the White House, where they discussed potential German investments in the US. After the meeting, Volkswagen’s Chief Executive Officer Herbert Diess said the company would announce investments in the US in January or February, including the building of a plant to make electric vehicles. Meanwhile, German government clarified earlier today that the talks in Washington are separate from trade negotiations regarding possible US tariffs on European car imports.
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