(Bloomberg) -- European equities were little changed at the open, set for the biggest weekly decline in more than five months, as tremors across emerging markets spurred concern about growth.
The Europe Stoxx 600 Index was down less than 0.1 percent, poised for a 2.3 percent retreat this week, the worst since March 23. Banking is the only sector that's up this week, led by Italian lender UBI Banca and Banco BPM as worries about Italian politics eased.
After bleeding cash for 25 consecutive weeks, European equity funds saw their first inflow in the past week of $0.3 billion, beating the meager $0.1 billion inflow into U.S. funds and trimming the $40 billion outflow since the year's start, according to Bank of America Merrill Lynch. Investors had been looking forward to the Thursday deadline for public comment on proposed U.S. tariff hikes on an additional $200 billion of Chinese imports, but no fresh announcement was made.
“I think there is limited scope for the tremors being felt in EM to cause major disruption in developed markets,” said Julian Rimmer, a trader at Investec Bank Plc in London. “A de-escalation in trade tensions between the U.S. and its various partners would be a far more powerful locomotive for global equities.”
To contact the reporter on this story: Ksenia Galouchko in London at kgalouchko1@bloomberg.net
To contact the editor responsible for this story: Blaise Robinson at brobinson58@bloomberg.net
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