Stocks lower, oil slumps, UK EU agree Brexit draft

In terms of sectors, real estate was at the top of the list, up 0.10 percent, while technology continued to make losses, finding itself at the bottom of the list, down 1.5 percent.

Traders will be keeping a close eye on moves in oil prices on Wednesday after crude plunged as much as 7 percent within the previous session on the back of fears around oversupply in addition to also weakening global demand.

As of 1 a.m. ET, Brent crude was seen trading half a percent lower to $65.15 a barrel while U.S. West Texas Intermediate crude fell 0.74 percent to $55.28. The rout will likely put pressure on oil firms’ share cost during the trading session Wednesday.

The oil in addition to also gas sector in addition to also miners were down 1.9 percent in addition to also 2.1 percent respectively.

On the earnings front, Danish shipping group A.P. Moller-Maersk beat third-quarter operating profit forecasts on Wednesday, nevertheless said a trade war between the United States in addition to also China had hit demand for container shipping. Shares within the company were up nearly 1 percent.

The Italian government on Wednesday stuck to its contested 2019 deficit target of 2.4 percent of gross domestic product (GDP), defying the European Union’s call for Rome to revise fiscal targets. Deputy Prime Minister Matteo Salvini warned the EU against issuing fines against Italy over its budgetary plans.

Brexit will likely be another area of focus for investors Wednesday after news of a key breakthrough between Britain in addition to also the EU on a divorce deal. Negotiators on neither side have reportedly agreed to a draft deal late Tuesday; British Prime Minister Theresa May will meet with her cabinet on Wednesday to get her ministers on side.

In corporate news, the European Commission sent a statement of objections to Siemens in addition to also Alstom over their proposed rail merger on Tuesday. The two firms confirmed the news to CNBC in addition to also said they might respond to the objections coming from EU’s executive body. Alstom can be set to report its first-half results on Wednesday.

Meanwhile, in data, key German gross domestic product (GDP) growth figures will be released Wednesday, amid fears of a slowdown within the country’s economy.

Leave a Reply

Your email address will not be published. Required fields are marked *


five × 5 =