(Reuters) - European stocks mostly fell on Wednesday, failing to join a recovery in global equities following a selloff on doubts over U.S. stimulus, with blue-chip shares weighing the most.
Asian markets and Wall Street stocks rebounded strongly from overnight losses triggered by U.S. President Donald Trump calling off talks over a coronavirus relief package until after the election. [.N]
Later on, however, Trump urged Congress to provide $1,200 stimulus checks for Americans and other support for airlines and small businesses.
“You can look at this as partly a negotiating tactic,” said Craig Erlam, senior market analyst at Oanda in London. “You call off talks now in the hopes that the Democrats will cede a little bit of ground. But I’m sceptical we’ll get one before the election.”
The benchmark STOXX 600 hit a two-week high earlier this week on reports of improvements in Trump’s health after he tested positive for COVID-19, although trading has been choppy amid uncertainties about the November election.
Positive earnings reports and upbeat brokerage recommendations helped limit the losses in Europe.
German logistics group Deutsche Post AG DPWGn.DE jumped 3.9% as it said it expected "exceptionally strong" business up to Christmas as ecommerce keeps booming during the pandemic.
Dialog Semiconductor DLGS.DE rose 3.2% after it forecast better-than-expected revenue in its third quarter.
Miners .SXPP rose after JP Morgan took an "extreme overweight" position, citing a boost to the sector from China's recovery and potential U.S. stimulus.
Britain's biggest supermarket chain Tesco TSCO.L slipped 0.7%, giving back gains after it reported a jump in sales.
Nexi NEXII.MI slid 5.7% after top shareholder Mercury UK Holdco said it was selling 13.4% of its stake in the Italian payments group, a day after Nexi announced a merger with rival SIA.
Reporting by Sruthi Shankar; Editing by Arun Koyyur, Kirsten Donovan
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