European markets lower amid US-China trade news; Richemont down 5%
On Thursday, the FTSE 100 closed at new record high of 7,787 points — at levels not seen since January 12.
Investors are also monitoring the bond market, after the 10-year Treasury yield hit another seven-year high on Thursday at 3.128 percent.
European shares traded lower on Friday morning as concerns over geopolitics and trade intensified.
The pan-European Stoxx 600 was 0.32 percent lower with most sectors in negative territory. Nonetheless, the index was still on track for its eighth week of straight gains, supported by a rally in energy shares. In Italy, the main index hit a fresh one-month low, after the Five Star Movement and Lega released their political program.
Telecoms were the worst performer, down by more than 1.4 percent. Altice dragged down the sector, lower by about 3.5 percent, after a ratings downgrade. And Telecom Italia fell 1.3 percent also after being downgraded by Berenberg.
Looking across the European benchmark, Ubisoft rose to the top of the index, up by nearly 6 percent. This followed higher-than-expected earnings. At the other end, shares of Richemont were among the worst performers, down by more than 5 percent on disappointing watch sales.
In earnings news, AstraZeneca AZN-GB reported a 37 percent decline in first-quarter profit, according to Reuters. Shares dropped more than 2 percent on the news.
Market sentiment was curbed by comments from President Donald Trump , who said he doubted there would be a U.S.-China trade deal. Separately, the president offered wealth and security to North Korea's leader in exchange for dropping a nuclear program.
Investors are also monitoring the bond market, after the 10-year Treasury yield hit another seven-year high on Thursday at 3.128 percent.
Back in Europe, European Central Bank member Ewald Nowotny said Thursday that the bank should not wait too long before normalizing monetary policy. At the moment, the central bank is scheduled to end its quantitative easing program in September but several analysts are expecting an extension until the end of 2018.
On the data front, balance of trade figures in the euro area showed a surplus of 26.9 billion euros in March.
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