European stocks mixed amid political uncertainty in Italy

European stocks traded mixed on Wednesday morning, as investors monitored the latest political developments in Italy.

The pan-European Stoxx 600 was flat with the various sectors taking different directions. Autos and health care dropped the most in early deals. Overall, stock performances are struggling to make gains amid fears over global economic growth and rising interest rates in the U.S.

Looking at individual companies, shares in LVMH were down by 3.4 percent in early deals after reporting some deceleration in sales. Other luxury brands were also below the flatine, with Dior off by 3 percent and Kering down by 2.8 percent. According to Reuters, Morgan Stanley cut EU luxury goods sector rating to “underweight”.

Vat Group dropped to the bottom of the benchmark after announcing that it will shorten the working hours for 400 production workers in the Hague.

In other corporate news, U.S. cable giant Comcast’s $40 billion offer for British broadcaster Sky is now unconditional, the firm said Tuesday, after having acquired 77 percent of Sky’s shares.

Shares in Italian banks remain in the radar, as investors follow the budget plans of the anti-establishment government. Ubi Banca fell 2 percent and Bank BPM was down by 1.2 percent. Fears linger of a standoff between Rome and the European Union over the country’s 2019 budget.

Giovanni Tria, Italy’s finance minister, promised on Tuesday the government would do what is necessary to restore calm if market jitters turn into a crisis. However, Deputy Prime Ministers Luigi Di Maio and Matteo Salvini stood their ground on the country’s budget and deficit plans.

Elsewhere, Brexit continues to be an area of focus for the market, as the U.K. government faces pressure to reach a divorce deal with the European Union before the end of the year. Britain’s Society of Motor Manufacturers and Traders, a trade body representing the automotive sector, launched a contingency plan called the “Brexit Readiness Program” on Wednesday, aimed at protecting the industry’s supply chain.

On the data front, U.K. balance of trade, GDP and production figures for August are due to be released Wednesday morning.