[LONDON] European shares stalled on Wednesday as weak results from the troubled auto sector weighed and investor confidence in a rally that has sent stocks shooting up this year showed signs of fraying.
"We think Europe will see growth pick up in the latter part of 2019 as China import demand stabilises and recent exceptional domestic factors weighing on Europe growth start to fade."Auto stocks fell after German bearings maker Schaeffler warned of an"extremely challenging" business environment in 2019 and said it would restructure, sending its shares down 6.2 per cent.
French car suppliers Faurecia and Valeo also fell 1.9 to 2.7 per cent while small-cap Swiss autos supplier Autoneum fell 17.2 per cent after reporting a drop in profitability.Logitech rose 2.2 per cent to a four-month high after the company said it expects annual sales to increase by mid to high single-digit in the next financial year ending March 2020.Dialog Semiconductor jumped 2.
Euro zone banks rose 0.2 per cent on fresh talk that the ECB would go ahead with a new round of ultra-cheap bank loans which could either be announced or hinted at during the central bank's meeting on Thursday. A Credit Agricole spokeswoman said Indosuez had"fulfilled all its obligations regarding anti-money laundering". Credit Agricole ended off lows, down 0.6 per cent.