The European markets ended Tuesday’s session with mixed results, but finished little changed overall. Profit taking played a role following yesterday’s U.S. tax reform fueled rally. Technology stocks were under pressure following the weak performance of the Nasdaq on Monday. Traders appear to be exiting tech stocks in favor of banks and retailers.
Traders remain focused on the Brexit negotiations after British Prime Minister Theresa May failed to strike a Brexit divorce deal with EU negotiators.
The talks stumbled yesterday after DUP refused to support Downing Street’s commitment to keep Northern Ireland aligned with EU laws.
“Despite our best efforts and significant progress…it was not possible to reach a complete agreement today,” EU Commission President Jean-Claude Juncker said in a press conference on Monday.
The pan-European Stoxx Europe 600 index weakened by 0.29 percent. The Euro Stoxx 50 index of eurozone blue chip stocks decreased 0.14 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.20 percent.
The DAX of Germany dropped 0.08 percent and the CAC 40 of France fell 0.26 percent. The FTSE 100 of the U.K. declined 0.16 percent and the SMI of Switzerland finished lower by 0.43 percent.
In London, Tesco rallied 3.00 percent after an upgrade by research analysts at Goldman Sachs Group.
Online trading company IG Group jumped in early trade Tuesday, but finished with a loss of 0.31 percent. The company said it continued to perform well in the second quarter following a strong first quarter.
Provident Financial sank 10.17 percent after UK regulator FCA launched a probe into its Moneybarn unit.
Allied Irish Banks Plc rose 0.90 percent after the lender maintained its dividend guidance.
Eurozone retail sales declined at a faster-than-expected pace in October, after rebounding in the previous month, data from Eurostat showed Tuesday.
Retail sales dropped 1.1 percent month-over-month in October, reversing September’s 0.8 percent rise, which was revised up from 0.7 percent. Economists had expected a 0.7 percent fall for the month.
Eurozone private sector growth accelerated as estimated in November, final data from IHS Markit showed Tuesday. The composite output index rose to 57.5 from 56.0 in October. The score was unchanged from the earlier flash estimate.
British service sector activity logged a further solid expansion in November, though the rate of growth eased since October, survey data from IHS Markit showed Tuesday. The…