Stocks in Europe hovered around the flatline Wednesday morning as market players waited for clarity from U.S.-China trade talks.
The pan-European Stoxx 600 was flat with the different sectors pointing in opposite directions. Autos led the losses amid continued trade tensions.
Investors are still awaiting details on negotiations between Washington and Beijing. U.S. Secretary of State Mike Pompeo said Monday he thought Washington and Beijing were “on the cusp” of reaching a deal. Despite positive comments from different members of the U.S. administration, market players are yet to find out how far-reaching the deal could be.
In corporate news, packager DS Smith led the gains, up by more than 5 percent. The company said that it’s to sell its plastics business for $585 million, according to Reuters.
Prysmian, on the other hand, sank more than 5 percent after a “mixed bag” for its fourth-quarter results, according to J.P. Morgan analysts.
On the earnings front, Just Eat fell 4 percent, despite posting higher revenues. The company is under pressure by one of its shareholders to merge with an online delivery rival.
Shares of Burberry, meanwhile, dropped 3 percent after Goldman Sachs downgraded the stock to a sell.
China under scrutiny
There is also a strong focus on the Chinese economy, after Beijing lowered its growth target for 2019. J.P. Morgan Asset Management told CNBC that the slowdown is “entirely natural,” while Capital Economics suggested that China’s growth could fall to 2 percent over the next decade.
