Europe open: Markets lower amid Sino-US developments, Brexit vote looms
European stocks were lower on Tuesday morning as investors digested positive Sino-US trade developments and awaited another Brexit parliamentary showdown in London.
At 0905 BST, the Stoxx 600 was 0.4% lower at 392.72, as Germany's Dax dropped by 0.1% to 12,741.53 and the French CAC 40 fell by 0.5% to 5,622.30. London's FTSE 100 was down by 0.2% at 7,149.05.
Prospects for a Sino-US trade deal looked brighter after White House economic adviser Larry Kudlow said good progress was being made and hinted that planned December tariff hikes could be shelved if negotiations continue to steam ahead.
Meanwhile, US President Donald Trump was also making positive noises about the negotiations, stating that China will have to make a deal "because their supply chain is going down the tubes".
Rabobank analysts said: "Trump is not a person who has an eye for details and he seems to be satisfied with the current progress so expect more tweets from him that will continue to fuel market optimism pushing asset prices higher."
Boris Johnson's Brexit deal faces a key vote in the House of Commons this evening, with Downing Street reportedly confident that it will have sufficient support to squeak through.
Oanda analyst Craig Erlam said: "From a trader's perspective, the next few days may bring a few minor setbacks, but they'll likely be viewed as more of an over-hyped procedural affair, that one that could derail a smooth Brexit."
"Even if at the end of it, the deal is not ratified by parliament, rather than leave us with no deal, it simply opens the door to an election, at which point a softer Brexit and even remain are back on the table. Not great for fans of public unity and the peaceful life but the currency may be a fan."
Among individual stocks, Swedish car manufacturer Saab was the top riser on the Stoxx 600 after its third quarter earnings trounced analyst expectations on the back of doubled order intake.
Swiss logistics specialist Kuehne & Nagel was also in the green as its core earnings for the first nine months of the year were driven higher by growth from its sea freight, overland and contract logistics divisions.
AMS followed close behind after third quarter sales beat expectations and the sensor specialist said it expected strong demand for its components from Apple and other smartphone manufacturers to continue.
Lawnmower maker Husqvarna dropped after reporting that weak demand from the North American market kept third quarter operating profit from meeting expectations.
Imerys slipped after the French specialty minerals outfit cutting full year guidance and announced the resignation of chief executive Conrad Keijzer.
Norwegian oiler Aker BP edged lower after cutting full year production targets following issues at its North Sea Valhall field.