European stocks mostly drop after rally

Europe’s major stock markets mostly slid yesterday, as investors set aside a bright performance in Asia and paused following last week’s bumper gains, dealers said.

“European stocks have had a stuttering start to the week, with strong Asian gains failing to inspire confidence closer to home,” said IG analyst Joshua Mahony.

“Markets [in Europe] are treading water after a week of substantial gains across global stocks.

“Much of the focus has been on US-China trade talks, and while we saw little by way of notable breakthroughs, the tone and willingness to find a solution is certainly improving,” Mr Mahony added.

London and Frankfurt stocks each dipped 0.2 per cent in value but Paris eked out a slender gain of 0.1 per cent around the half-way mark.

The dollar rose versus the yen but fell against the euro and pound.

UK markets showed little reaction after seven MPs from Britain’s opposition Labour Party on Monday broke away in protest at leader Jeremy Corbyn’s support for Brexit and his failure to stamp out anti-Semitism.

Sentiment was subdued also with US markets closed for the Presidents’ Day holiday.

“With US markets out for the Presidents’ Day holiday, volumes are likely to start...