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The pan-European Stoxx 600 slipped around 0.8 percent during mid-morning deals, with almost all sectors and major bourses in negative territory.
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Market focus is largely attuned to global trade developments, amid rising doubts that the world's two largest economies will be able to secure a comprehensive trade deal during a cease-fire on tariffs.
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Trading volumes are expected to be relatively low on Wednesday, with U.S. stock markets closed as citizens observe a national day of mourning for President George H. W. Bush.
European stocks were lower Wednesday morning, as resurgent trade worries worsened investor fears about global economic growth.
The pan-European Stoxx 600 slipped around 0.8 percent during mid-morning deals, with almost all sectors and major bourses in negative territory.
Europe's construction and material stocks were among the worst performers, down more than 2 percent amid growing trade war concerns. France's Saint-Gobain SGO-FR led the sectoral losses after J.P. Morgan cut its stock recommendation to "neutral" from "overweight." Shares of the Paris-listed stock dipped almost 3 percent on the news.
Looking at individual stocks, Britain's Hargreaves Lansdown HL.-GB slumped to the bottom of the European benchmark after Morgan Stanley cut its stock recommendation to "underweight" from "equal-weight." Shares of the London-listed firm fell 4 percent Wednesday morning.
Meanwhile, U.K.-listed drugmaker Shire SHP-GB was among the top performers on Britain's FTSE 100 index during early morning deals. Japan's Takeda Pharmaceutical secured shareholder approval to complete a £46 billion ($59 billion) takeover of the company Wednesday morning, prompting shares of Shire to jump 2.5 percent.
Trade concerns
Market focus is largely attuned to global trade developments, amid rising doubts that the world's two largest economies will be able to secure a comprehensive trade deal during a cease-fire on tariffs.
The United States and China agreed to temporarily hold off on imposing additional charges against each other's goods over the weekend. President Donald Trump and President Xi Jinping 's trade truce prompted global stocks to surge higher on Monday but fading optimism over the political deal has since pared equity market gains.
Meanwhile, concerns about slowing U.S. growth appeared to accelerate declines in long-term Treasury yields overnight. Signals from the U.S. central bank last week that it could be nearing an end to its three-year rate hiking cycle pushed the U.S. 10-year Treasury yield to three-month lows, below 3 percent on Tuesday.