European Equity Market Handover Risk off breaks out after broken trade deal

Stock market snapshot as of [9/5/2019 2:02 PM]

A ‘broken’ trade deal with China, according to Donald Trump, another salvo of North Korean test missiles and the weakest auction of benchmark U.S. Treasurys in a decade seal the impression of Thursday’s session as more definitively ‘risk-off’ than Wednesday’s
There’s really only one game in town today and it’s a binary one of ‘chicken’, with the global economy at stake. Either there will be a China-U.S. trade deal or there will not. Deep falls across most global stock market regions suggest that Thursday, the first day of talks scheduled with China’s Vice Premier Liu He, is more important than the second, set for Friday
If there’s no discernible outcome by Thursday’s U.S. close, stock markets can be expected to extend this week’s downside considerably, well before the planned tariff hike at 12:01 U.S. Eastern Time

Corporate News

European stocks also had their usual mixed-to-negative set of earnings from heavyweights to contend with. Financial and consumer sectors led the downside
Shares in one of the larger troubled Italian banks, Banco Popolare di Milano were down 7.1% just now. It reported a 15% drop in net interest income and lower than forecast revenues
Germany’s Continental AG fell 3.9%, the worst cars & parts industry decliner. The drag is from both trade trepidation and disappointing sales

Upcoming corporate highlights

BMO: before market open

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