Europe midday: Stocks low as dollar drops after Trump comes into power
European stocks were in the red as investors continued to digest Donald Trump’s admission into office as US President on Friday.
At midday, the benchmark Stoxx Europe 600 fell 0.17%, Germany’s Dax was down 0.35% and France’s CAC 40 was 0.31% lower.
Meanwhile, oil prices pushed lower with West Texas Intermediate down 1.4% to $52.50 per barrel and Brent crude 1.1% lower at $54.87.
Mike van Dulken head of research at Accendo Markets said: “Equities are on the back foot to start the new trading week, sentiment dented by a weak USD derived from Trump's Friday inauguration speech striking a very anti-globalisation tone. This is fuelling concerns about how gung-ho he'll be on certain divisive policies.
"Reciprocal GBP and EUR strength is pushing FTSE and DAX components lower on account of their goods now being slightly more expensive and international profits worth that little bit less.”
On the corporate front, Italian insurer Generali racked up healthy gains following a report that Intesa Sanpaolo could take a stake in the company, possibly with Germany’s Allianz.
Housebuilder Bovis Homes rallied following a Sunday Times report that one of its larger shareholders has suggested Berkeley Group may mount a bid for the company.
Dutch electronics company Philips Lighting dimmed after it said it plans to return up to €300m to its investors over the next two years through share disposals by its main shareholder Royal Philips.
Oil giant Royal Dutch Shell slipped as Saudi Basic Industries (Sabic) announced on Sunday that it has signed an agreement to acquire the 50% stake in the company that it doesn’t already own for $820m.
Paddy Power Betfair was in the red after saying it would not hit its top-end targets after Donald Trump's unexpected US election win and several other punter-friendly sporting results at the end of the year cost it around £40m. However, the FTSE 100 group said it still expected to make underlying earnings before interest, tax, depreciation and amortisation around the mid-point of its November guidance of £390-405m.
Essentra, a maker of cigarette filters and plastic packaging, tumbled after it warned that it expects profit will be below expectations to a due to a more challenging than previously anticipated Health & Personal Care Packaging unit, which has been experiencing operational issues.
Insurer Admiral was lower as Deutsche Bank cut its stance on the stock to ‘sell’.
Coming up, investors look to eurozone consumer confidence index at 1500 GMT.