European shares ended lower to edge into negative territory on Tuesday afternoon, amid uncertainty and pessimism over the outcome of trade talks between the U.S. and China.
The pan-European Stoxx 600 closed 0.2 percent during afternoon trade, having earlier hit its highest since May 2015. Travel and leisure stocks jumped 0.6 percent to lead gains, as most sectors fell below the flatline.
The status of trade talks between economic superpowers China and the U.S. remains in focus for global investors. Beijing is pessimistic about the trade deal, one government source told CNBC’s Eunice Yoon on Monday. China is concerned after President Donald Trump said there would be no tariff rollback, which Beijing had thought both parties had agreed in principle, Yoon reported.
In the absence of fresh shocks or further gloom around the global economy, investors seemed to shrug off suspicions of Chinese skepticism during Tuesday’s trading session.
Across the Atlantic, U.S. stocks were mostly lower on Tuesday, fading from fresh record highs as investors weighed rising Boeing shares against corporate losses.
Focus in the U.K. remains on political campaigning. Britain’s opposition Labour party on Tuesday took aim at “obscene” billionaires, pledging a radical redistribution of wealth. Party leader Jeremy Corbyn is scheduled to go head-to-head with Prime Minister Boris Johnson in the election’s first televised leaders’ debate on Tuesday evening London time.
Stocks on the move
Satellite operator SES plunged 22 percent after the chairman of the U.S. Federal Communications Commission backed a public auction to free up spectrum for the C-band for 5G, according to Reuters.
British technology company Halma saw its shares rise 8.7 percent after reporting interim results, while Homeserve added 4 percent after posting a rise in first-half profits.
Easyjet stock rose 3.6 percent after the budget carrier reported annual results at the upper end of its guidance.