On Tuesday, American shares struggled for direction due to the fact that profits in Walmart compensated losses in financials, with trade negotiations between China and America in focus…
European equities decline
On Tuesday, European equities found themselves in negative territory due to the fact that market participants started questioning whether the truce agreed by China and America on their trade clash would result in a long-term agreement.
Having enjoyed a leap for its first trading day, the most sensitive to China as well as trade war worries, Germany’s DAX went down by 0.6%.
The STOXX 600 went down by 0.3%.
The US-China trade negotiations appear to be the major driver for risk sentiment worldwide. They aren’t generally expected to be promising.
The European automotive sector SXAP that appears to be extremely sensitive to trade war worries was the top loser, diving by 1.7%.
As for the tech sector SXAP, it was also among big losers, sliding by 0.9%.
Chip manufacturers, heavily exposed to China and trade, suffered heavy losses. As a result, AMS declined by 4.7%, while Siltronic decreased by 3.8%.
Contributing to the poor market sentiment, on Monday, the yield curve between American three-year and five-year notes as well as between two-year and five-year flipped over. That’s the first such a case since the financial meltdown, excluding short-dated debt.
Market experts are currently afraid that an inversion of the two-year, ten-year yield curve could be inevitable, indicating a probable recession in the United States.
In addition to this, France's JCDecaux reported one of the worst individual dives, losing approximately 6%.
As for French catering group Elior, it declined by 7.3% having reduced its sales surge outlook. Besides this, Belgian postal services company Bpost went down by 20% following a profit warning.
Energy equities were among the few gainers because crude surged amid expected OPEC-led supply trims as well as a mandated reduction in Canadian output.
BP went up by 0.6%, while Royal Dutch Shell managed to ascend by 0.5%.
On Monday, British equities generally slipped after the close…
On Friday, Wall Street's key indexes were braced for reporting their biggest weekly profits for a month because traders were quite optimistic about the everlasting trade negotiations to tackle a bruising tariff clash between China and America…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…