Europe open: Shares lower but arms makers rally as US-Russia talks canned

(Sharecast News) - European shares opened lower on Wednesday as investors assessed a large release of quarterly earnings, while defence stocks rallied again after a planned meeting on the Ukraine war between President Donald Trump and his Russian counterpart Vladimir Putin in Hungary was cancelled. The pan-European Stoxx 600 index was down 0.08% to 572.84 at 0833 BST. Germany's DAX fell 0.14%, France's CAC 40 was 0.4% lower, Italy's MIB declined by 0.36%, while the UK's FTSE 100 bucked the trend, gaining 0.65% on the back of inflation data.

Trump was scheduled to hold talks with his fellow authoritarian leader on ending the conflict with Ukraine, but media reports overnight stated the meeting had been put on hold.

The US president has reportedly been telling his Ukraine counterpart Volodymyr Zelenskyy that he needs to give up territory taken by Russia during the conflict as he pivots his support back to Moscow.

Defence stocks gained again as a result, with Renk, Hensoldt, Rheinmetall, Dassault, Leonardo and Babcock all up.

On the economics front, UK inflation remained unchanged at 3.8% in August, with the core rate dipping 0.1% to 3.5%.

Gold prices held at around $4,120 per ounce after the sharpest drop in five years saw the precious metal plunge 5% on Tuesday. Bullion still remains up around 60% in the year so far.

"The pullback was triggered by hopes of easing trade tensions between the US and China and a rebound in the US dollar.," said Swissquote Bank analyst Ipek Ozkardeskaya.

"Yet, tensions are far from guaranteed to ease-not this week and probably not during Trump's entire mandate at the White House-and the US dollar's rebound may be reversed by persistent, and very much alive, dovish Federal Reserve (Fed) expectations. Plus, the US government remains shut, and debt worries in the Western world have not eased."

In other equity news, Unicredit shares fell despite the Italian bank posting quarterly earnings above expectations. UK peer Barclays gained after announcing a surprise £500m share buyback.

ITV shares slumped after Liberty Global, its largest shareholder sold half its 10% stake in the British broadcaster.

Reporting by Frank Prenesti for Sharecast.com