The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
European equities dive to 2-week minimum
On Wednesday, European equities reached their lowest value for two weeks because data disclosing that the German and Japanese economies shrank in the third quarter drove fears about global surge in the face of a dive in crude prices.
The STOXX 600 decreased by 0.5% because commodities sectors weighed, while Italian shares sold off. In early trades, the STOXX as well as leading euro zone stock indexes STOX50E reached their lowest value since Oct 31, regaining some ground later.
Moreover, Italy's intention to stick to its surge as well as and deficit goals in its re-submitted draft budget prepared a showdown with the EU over breaking structural deficit limits.
It underpinned government bond gains and also suppressed Italy's FTSE MIB, which dived by 1.8%, demonstrating its worst dive for a month because bank equities headed south by 1.5%.
Besides this, the gas and oil sector SXEP went down by 2.3%, making it to lose its position as top-gaining industry year-to-date to healthcare.
As for energy shares, this quarter they have been one of the leading contributors to the region's earnings surge, making the dive a big concern for traders.
Crude was struggling to gain a footing following a 7% sink the previous day on soaring supply.
The FTSE 100 went down because Prime Minister Theresa May sought to persuade her cabinet to accept a draft EU divorce deal, which opponents tell threatens the independence as well as unity of Great Britain.
In addition to this, mining equities SXPP headed south by 2.7% because copper prices sank after dismal China retail sales data rekindled worries of a deceleration in the world's number one metals consumer.
Besides this, Dutch payments company Adyen's equities declined by 9.5%.
Iliad equities appeared to be among top performers, adding 7.1%.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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