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European shares fluctuate ahead of EU summit

European shares fluctuate ahead of EU summit

European shares fluctuated on Friday as German Chancellor Angela Merkel said it would be difficult to see a deal between EU leaders for a recovery fund worth 750 billion euros.

Ahead of the two-day summit in Brussels starting on Friday, Merkel warned: “I must say that the differences are still very, very big and so I can’t yet say whether we will get a solution this time already.” “I expect very, very difficult negotiations.”

There are differences among European leaders regarding key issues, including grants vs loans, conditionality and re-distribution of funds.

Countries such as Denmark, Sweden, Austria and The Netherlands would prefer a smaller package, compared to other countries such as Italy, Spain and Greece, which were hit hard by the pandemic.

Hence, many analysts are suggesting that the deal would be reached before this week end, but it will probably be sealed in August.

The Euro STOXX 600 slipped 0.13 percent to 371.59, and the STOXX 50 fell 0.2 percent to 3,358.81.

German DAX 30 index segmented 0.16 parcen to 12,897.59, while CAC 40 dipped 0.47 percent to 5,061.44.

In the U.K., the FTSE 100 index inched down 0.011% to 6,249.54.

Most Asian stocks managed to rebound today despite overnight losses on Wall Street, where equities on concerns about the U.S.-China tensions.

Later in the day, the U.S. will release its housing data for June, as well as the preliminary consumer sentiment for July.

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