Virgin Galactic’s Branson flew to space, but the stock of Virgin Galactic (SPCE) dropped. Why?
European equities head south, as trade concerns bite
On Monday, European stocks started lower because concerns as for American trade policies as well as worries as for German Chancellor Angela Merkel's coalition government impacted market sentiment.
Economic data didn’t manage to have investors reassured with euro zone factory surge speeding down to an 18-month minimum in June in the face of widespread worries as for fresh trade barriers.
The STOXX 600 slumped by nearly 0.8%, with losses across the European continent as well as sectors.
The European Union has warned America that imposing import duties on vehicles as well as auto parts would affect its own automotive industry and probably provoke corresponding counter-measures.
In addition to this, Germany's trade-sensitive DAX slipped by 0.6%. Merkel is expected to make her last effort to conclude a migration row with her conservative CSU allies by simply holding negotiations with her interior minister. The minister’s offer to resign brings up an issue whether her vulnerable government is able to survive or not.
In Frankfurt, the equities of consumer electronics retailer Ceconomy managed to ascend by up to 10% after news that telecoms company Freenet would purchase a 9% stake.
Airbus equities dived by 2.2% in Paris after Bloomberg News informed that the European plane maker would miss its delivery objective for A320 narrow-body jets powered with Pratt & Whitney engines this year.
In addition to this, French supermarket retailer Carrefour along with edged down respectively 0.7% percent and 0.4% after they uncovered plans to create a global long-term purchasing alliance because they’re concerned with cutting costs.
The FTSE 100 edged down 0.9% because tensions over Brexit intensified within Prime Minister Theresa May's cabinet, while a fresh survey disclosed a record 75% of key UK companies were currently pessimistic as for leaving the European Union.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!