2014.08.1206:27:57UTC+00European shares inch down, eyes geopolitical tension

European shares were a little down on the opening trade as investors weighed the corporate earnings report while keeping in focus the geopolitical situation in Gaza, Iraq, and Ukraine.

The pan-European Euro Stoxx 600 index is marginally lower with the benchmark index stooping as the heightening tensions in Ukraine, Gaza, and Iraq continue. The Stoxx 600 shed 0.1% to 329.29, 9:03 am, London time. The gauge dropped last week by as much as 2.1% on the ongoing turmoil in Gaza Strip, Iraq, and Ukraine. UK’s FTSE 100 is down 0.01% or 0.52 pips to 6,632.52. Germany’s DAX Index and France’s CAC 40 Index declined by 0.30% or 27.67 to 9153.07 and 0.37% or 15.68points to 4,182.02 respectively. Spain’s IBEX 35 Idx advanced by 0.60% or 61.00 points to 10,254.50.

Henkel shed 2.7% following a warning the the turmoil in Ukraine and Middle East will slow the growth of the company. Goldman Sachs along with Berenberg Bank sold as much as 2.9 million shares in an accelerated bookbuilding driving Rhoen-Klinikum to drop by 1.3%.

Investor confidence gauge, ZEW indicator, conducted by ZEW Center is speculated to fall to 54 for the month of August. It was at 61.8 in the month of July.

Currency strategist at Commerzbank, Lutz Karpowitz, commented that in the case that ZEW fails, the Russian concern will definitely intensify which means that the euro will not only suffer due to lack of momentum from the day’s other data, it will also perish in the long run as the European company is not able to take off.

A report on Tuesday said that 280 trucks to Ukraine that carries humanitarian aid following warnings from several powers that the 45,000 Russian troops that was added to the border might be a facade for what might turn into an invasion especially now that the humanitarian aid is on its way.