European markets mixed amid US-China trade developments; Pandora down 12% after earnings

European markets traded mixed on Tuesday morning as investors await updates on a potential U.S.-China trade deal and monitor economic developments.

The pan-European Stoxx 600 hovered below the flatline in early trade, with chemicals stocks jumping out to 0.5% gains while telecoms fell 0.7% to lead losses.

Asian shares rose during Tuesday’s session, following record closes for stocks on Wall Street on Monday. Japanese shares led regional gains, with the Nikkei adding 1.8% during afternoon deals.

Chinese leader Xi Jinping, delivering an address at the China International Import Expo on Tuesday, called for international tensions to be resolved through discussion, urging the removal of global trade barriers.

While he did not specifically mention the U.S., his remarks came after Reuters reported that China was pushing Washington to remove more tariffs as part of a “phase one” trade agreement between the world’s two largest economies.

Surveys on Tuesday showed that China’s services sector slipped to an eight-month low in October, while business confidence fell to a 15-month low, according to Reuters.

Back in Europe, new data published by the British Retail Consortium (BRC) on Tuesday showed that consumer spending in the U.K. saw its strongest year-over-year increase in October for six months. However, the organization warned that sales growth over a 12-month period fell to a new low of 0.1%.

The BRC’s chief executive told Reuters that Brexit and new uncertainties arising from the U.K.’s looming general election were creating a difficult environment for retailers.

On Monday, PMI data from IHS Markit showed that the euro zone’s manufacturing sector continued to contract during October.

In terms of individual stocks, earnings remained in focus as Siemens Gamesa shares plunged 12.7% after the wind energy company cut its 2020 guidance and postponed its profitability targets by two years.

Pandora also tumbled 12.5% after the Danish jeweler swung to an unexpected net loss in the third quarter and cutting its revenue guidance, hit by weak consumer demand and political turmoil in Hong Kong.

Swiss travel retailer Dufry jumped out to a 6% gain in early trade, leading the Stoxx 600.