Europe open: Shares lower on Brexit no-deal, Covid resurgence fears

European stocks slipped into the red at the start of the Tuesday session as investors weighed the final round of Brexit trade talks, government responses to the rising number of coronavirus cases and the upcoming US presidential debate.

The pan-European Stoxx Europe 600 fell 0.43% at the open. Germany’s DAX, France’s CAC 40 and UK FTSE 100 were all lower.

Britain is holding talks this week with the European Union in an attempt to broker a trade deal ahead of an October 15 deadline as it forces through legislation that would illegally alter the Withdrawal Agreement.

All eyes later in the day will be after the European and US markets close, as President Donald Trump and former Vice-President Joe Biden start their first debate.

In corporate news, travel and retail shares were lower on fears of new coronavirus-related restrictions.

Fallers included airports operator Aeroports de Paris, Fraport, SSP Group, easyJet, TUI and Deutsche Lufthansa.

British Airways owner IAG, engine maker Rolls-Royce and GKN owner Melrose were all in the red as investors continue to fret about the impact of the Covid-19 crisis and restrictions on the airline industry.

High Street baker Greggs fell sharply as it warned of job cuts in the face of expected lower demand and the closure of the government’s Job Retention Scheme ends next month. The company said like-for-like sales in company-managed shops averaged 76.1% of 2019 levels in the four weeks to September 26 - in line with planning assumptions.

Shares of Ferguson rose as the plumbing products supplier reported a 4% fall in full-year pre-tax profits reinstated a dividend and said it would resume bolt-on acquisitions.