LONDON — European stocks closed lower on Wednesday as investors digested President Trump's decision to halt stimulus talks until after the November election.
The pan-European Stoxx 600 ended just over 0.1% lower as equities in the region struggled for direction. Mining stocks were the top performers, adding 1.7%, while the telecoms stocks sank 1.5% to lead losses.
Markets in the U.S. and Asia-Pacific have been reacting Trump's tweet on Tuesday that the White House is halting talks with Democrats about a second coronavirus stimulus deal.
The Dow Jones Industrial Average closed down 375 points on Tuesday, having rallied in the session on hopes that there would be a second relief package to prop up markets as the coronavirus outbreak continues.
"I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business," Trump said in a tweet on Tuesday.
However, Trump later tweeted support for aid to airlines and other stimulus measures, stoking hope that a smaller aid package could be passed by lawmakers. Those comments buoyed U.S. stocks on Wednesday, with the Dow Jones Industrial Average climbing over 400 points.
U.S. Federal Reserve Chairman Jerome Powell on Tuesday called for continued aggressive fiscal and monetary stimulus for an economic recovery he said still "has a long way to go." Also on Tuesday, the International Monetary Fund's Managing Director Kristalina Georgieva said the path ahead will be a "difficult climb."
Danish diagnostics firm Ambu gained 5% to lead the Stoxx 600 in afternoon trade after winning a single-use endoscopy contract with a major U.S. group purchasing organization.
At the other end of the European blue chip index, Italian payments firm Nexi fell almost 6% after major shareholder Mercury discounted a 13.4% stake in the company, just a day after Nexi announced a tie-up with rival SIA.
-CNBC.com staff contributed to this market report.