The pan-European Stoxx 600 was up around 0.5% during morning deals, with most sectors and major bourses in positive territory.
France’s CAC 40 was up 0.8% at 9:07 a.m. in London (4:07 a.m. ET), despite political turmoil that sent the market into chaos earlier in the week. The U.K.’s FTSE index hovered around 0.4% higher, Italy’s FTSE MIB rose around 0.8%, and Germany’s DAX ticked up 0.4%.
The industry is already facing significant pressure from unsustainable levels of global overcapacity, the bloc said. The U.K.’s steel industry warned that the EU measures could be an existential blow to the already limping sector.
Swedish steel producer SSAB ranked highly on the Stoxx 600 in morning trade, with shares rising around 4%. Germany’s Thyssenkrupp rose by around 4%, while Luxembourg-based ArcelorMittal stock gained 3.6%.
Autos stocks were also down by around 1.6%, amid widespread concern that steel tariffs will push up prices for vehicle manufacturers. BMW, down 7%, led losses after the German carmaker trimmed its margin guidance on the back of weak China sales. Mercedes-Benz shares shed 2.6%, and Porsche was 2.5% lower.
“We do not contest the need for some level of protection for a commodity industry like steel but we feel that the parameters as proposed by the Commission go too far in ring-fencing the European market,” said European Automobile Manufacturers’ Association Director General Sigrid de Vries. “We need to find a better balance between the needs of European producers and users of steel in this measure.”
SoftBank to buy ABB robotics unit
Meanwhile, SoftBank Group is set to buy the robotics division of Swiss engineering firm ABB in a deal worth $5.4 billion. Shares of ABB were 1.3% higher in early trade, touching a two-year high.
France also remains in focus for regional investors after the shock resignation of French Prime Minister Sebastien Lecornu on Monday morning, before he’d even presented the fractious National Assembly with budget plans — which have undone two previous short-lived administrations.
In a surprise twist, however, French President Emmanuel Macron gave Lecornu another 48 hours for “final discussions” with rival parties to try to break the impasse. Lecornu is due to report to Macron on Wednesday evening on any potential breakthrough.
Asia-Pacific stock markets traded flat overnight, breaking ranks with Wall Street, which saw losses Tuesday.
U.S. stock futures were little changed on Tuesday night after the S&P 500 snapped a seven-day winning streak. A fall in Oracle shares called into question the sustainability of the artificial intelligence trade. The government shutdown is also in its second week.
European data releases on Wednesday include German industrial production figures. There are no major earnings releases.
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