European stocks edge lower; Apple to begin EU legal battle

By Yomna Yasser On Dec 19, 2016

Bourses in Europe started trading day lower as markets entered the usually quiet week for volumes ahead of the holiday season.

The pan-European Euro Stoxx 600 was slightly lower, dropping 0.12 percent, with most sectors trading in the red.

Basic resources were among the worst performers on news that Chinese authorities are foreseeing a lower growth rate in 2017.

However, the start of the trading was positive for the technological sector, jumping more than 0.7 percent. The U.S. multinational Apple is expected to appeal against an EU ruling stating that it needs to pay back 13 billion euros ($13.6 billion) in taxes. Ireland, where Apple has its European headquarters, has accused the European Commission of interfering with its sovereign power.

BMPS down by 8%; Deutsche Bank falls 2.5%

The embattled Monte Dei Paschi was falling more than 8 percent in mid-trading on Monday – the first day of its cash call.

The German lender Deutsche Bank was among the worst performers during early morning trade, falling more than 2 percent. The bank has reportedly agreed to pay $37 million to end government investigations into dark pool private trading venues, the Wall Street Journal reported.

Shares of Danone were also down after the French company reported a lower-than-expected growth target for 2016.

However, Mediaset shares were up by 2.8 percent following reports that Vivendi had denied it was taking over Italy’s largest private broadcaster.

Meanwhile, U.K. Prime Minister Theresa May is due to brief parliament on last week’s EU summit on Monday.

In terms of data, the German Ifo institute reported Monday that business climate in Germany picked up in the month of December. Its business climate index increased from 110.4 points in November to 111.0 points in December.

“The business outlook for the first half of 2017 is also slightly more optimistic. The German economy is making a strong finish to the year,” Clemens Fuest, president of the Ifo institute said in a statement.

Source: CNBC