EU chief negotiator Michel Barnier (L) speaks with France’s ambassador to European Union Philippe Leglise-Costa ahead of a meeting of the permanent representatives committee on December 7, 2020 in Brussels.
john thys/Agence France-Presse/Getty Images
European stocks slipped on Monday, after weekend talks did not lead to a trade deal between the U.K. and the European Union.
After rising for five consecutive weeks, the Stoxx Europe 600 SXXP, -0.52% started Monday on the back foot, slipping 0.4%, with banks including Lloyds Banking Group LLOY, -3.37% declining.
The German DAX DAX, -0.54% and French CAC 40 PX1, -0.92% nursed small losses, while the U.K. FTSE 100 UKX, +0.29% inched higher.
Futures on the Dow Jones Industrial Average YM00, -0.45% fell 106 points.
Over the weekend, British Prime Minister Boris Johnson held talks with European Commission President Ursula von der Leyen as negotiators try to reach a deal on a level playing field, dispute mechanisms and fishing, with the latter topic mostly resolved, according to reports. “In our view, the fact that a) the two sides are still at the table and b) are not resorting to a high-level blame game suggests that both sides want a deal and believe it can still happen. We continue to see a 75% chance of such an outcome,” said economists at Berenberg Bank.
Traders also were reacting to data showing a 21% jump in Chinese exports in November, including a 10% increase to the United States. Separately, Reuters reported the U.S. was preparing economic sanctions on a dozen more Chinese officials in response to Beijing’s crackdown on dissent in Hong Kong.
The European Central Bank on Thursday is expected to extend the capabilities of its bond-buying program. In the U.S., a bipartisan group of senators are expected to unveil the legislation behind their $908 billion stimulus plan as early as Monday.
Of stocks in the spotlight, IMImobile IMO, +47.33% jumped 47% as Cisco Systems CSCO, +0.61% said it would buy the U.K. cloud communications services firm for £543 million, a 48% premium to Friday’s close.
Countrywide CWD, +20.55% jumped 19% to 304 pence as Connells, a real estate agent, upped its offer for its rival by 30% to 325 pence per share. Private-equity firm Alchemy Partners has offered to inject £70 million and take controlling a stake in Countrywide.
Miniature figurines maker Games Workshop GAW, +3.70% climbed 7% after reporting a rise in fiscal first-half profit and sales.
Frasers Group FRAS, -0.23% slipped 0.8% after saying that it is in negotiations with the administrators of Debenhams’ UK business regarding a potential rescue.
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