Trade Uncertainty Reportedly Causes European Stock Markets to Finish Lower
Europeans Markets Finish Lower
Monday afternoon had European markets closing lower howbeit by a slightly slim margin. The day trading witnessed a lot of fluctuations above the flat line and below it at other times. The fluctuation was due to concerns on the part of investors about world trade in general.
On that same day, the pan-European Stoxx 600 finished 0.2% lower. Most of the major stock exchanges and sectors finished in the negative territory.
Sector-wise, the basic resources stocks fell the most on Monday as it closed the trading day 1.4% lower due to the intense trade uncertainty. The chemical stocks also ranked among the worst performers. The shares closed roughly 1% lower in the emergence of news of merger and acquisition. Notwithstanding the flat finishing, it recouped some of its afternoon losses.
Due to the news that the U.S. Federal Trade Commission could make further concession demands in the German industrial gases company’s merger with EuropeanPraxair, Linde fell lowest in the sector. Its shares closed 7.5% lower.
Individually, the stocks of IWG, the U.K. office provider, slumped with about 20% based on reports that the company had left its acquisition discussions with three other interested companies on Monday.
HSBC also recorded earnings that beat its pre-tax profit went higher by 4.58% year on year and was at $10.722billion the first half of this year. It shares closed 1% lower even though it solidly traded at the level all through the afternoon. Unicredit, the Italian lender, is reportedly due to report its results for the second quarter on Monday. Sources claimed that the industrial orders of Germany and also PMI data were scheduled for release as well as British car sales and eurozone retail PMI figures
According to IG, an online broker, Britain’s FTSE 100 reportedly traded at 7,681 which was 16 points higher, and the GermanDAX rose to 12,650 by 31 points. The online broker further noted that FrenchCAC 40 rose by 16 points and was at 5,498 while Italy’s FTSE MIB went up with 86 points and was at 21,620.
US stocks fall
In the US, the Dow Jones Industrial Average fell on Monday. The slip in the index was reportedly due to Intel shares fall which caused the index to go lower as it dropped by 1.1%. The S&P 500 surged by 0.1%, and utilities and consumer discretionary reportedly led the market. The Nasdaq index that has lots of tech stocks rose by 0.2% as Facebook climbed by roughly 2%.
Investors have continued to pay close attention to the trade wars between the US and its trade partners. An official newspaper of the Chinese government spoke on Trump’s role in the rising protectionism war between the two largest economies in the world. China on Friday stated that it was planning its retaliation against the US tariffs as it was targeting about $60 billion worth of US goods.
In Asia, the equity markets were in black as traders were still getting used to the People Bank of China decision to stabilize the country currency. The Central Bank of China fixed the yuan daily midpoint rate at about $6.8513 which was the weakest it had been since last year May. The yuan traded slightly below that flat line as it was at $6.8275 during the early morning trade.
Sources claim that the European alies of America would probably be nervous on Monday as Washington plans to re-impose the overturned sanctions on Iran. The sanctions were previously reversed by the 2015 historic nuclear deal. These re-imposition of duties would reportedly affect Iranian products such as metals and automobiles.
On the most recent development on Brexit, Liam Fox, the UK Trade Secretary stated that the stubbornness on the part of the European Union was increasing the likelihood of a no-deal withdrawal. The trade secretary highlighted that the chances there would be a no-deal Brexit was 60-40 even though both parties noted that they were keen on finalizing the terms on which the UK would depart in March next year.
While indicating the consequences which a failure to make a deal would have on member states, Fox noted that it was left to EU27 to decide whether they intended to maintain the ideological purity of the EU commissions even at the expense of the members’ economies. It is pertinent to note that a no-deal Brexit had the likelihood of causing harrowing effects for both the European Union and Britain’s economies. The no-deal would cause both sides to severe ties sharply and rule out any provisions to maintain smooth trading between both parties.
More in Global Markets
Bill Gates Returns to the $100 Billion Club — And It’s Not Because of Microsoft
Bill Gates has Microsoft to thank for ALL of his millions, right? I wouldn’t hold it against you if you took...April 17, 2019
The Rock Did THIS For A 10-Year-Old And Everybody Loved It
Dwayne Johnson has been long known for his wrestling bouts in WWE and some movie roles and popular The Rock is...April 17, 2019
Here’s Why We Think Buying A Used Car is The Best Option For You
People who think of buying a used car believe there is a stigma attached to it. It is a common belief...April 17, 2019
Here’s What Can Really Happen if Your Identity Gets Stolen
Criminals acquire the personal information of individuals in a crime which is known as identity theft. They use the information to...April 17, 2019
Amazing Apps That Will Help You Start Your Own Business in No Time
Starting your own business requires thorough research and enough resource supplies. It’s somehow not an easy task. The good news is...April 17, 2019
Michael Jordan Once Turned Down a Lucrative Brand Deal Because He Didn’t Want to Say THIS Word
Endorsements for various products is common practice in the entertainment and sports industry which has been around for quite some time. Attaching a...April 17, 2019
Don’t Skip the Gym! Here’s What Happens To Your Body If You Stop Exercising
Have you ever considered what happens to your body when you skip exercising for three days? You may have been going...April 17, 2019
Do You Think You’re Smart Enough to Make a Worthy Investment? Here Are 10 Apps To Help You Out
Undertaking an investment is somehow the best thing to do in order to make your assets work. On the other hand,...April 17, 2019
Aside from Bank Loans: Here Are 7 Alternative Financing Methods for Startups
Many people want to venture into business. On the other hand, they lack the capital to start working on their project. There...April 17, 2019