European equities keep diving as soaring trade worries weigh

European equities keep diving as soaring trade worries weigh

On Friday, European equities declined, with cars as well as basic resources equities facing the brunt of a wide sell-off provoked by mounting concerns that American duties on $60 billion of Chinese imports could step up.

All sectors found themselves in negative territory, bringing pan-regional STOXX 600 benchmark down for a second day – it lost 1.4% demonstrating its lowest value since February 2017.

Market participants closely watched China’s response that urged America to give up this policy on Friday and also revealed its own plans to impose duties $3 billion of American imports.

Despite risks that the duties could trigger a full-blown trade conflict, some traders told that they aren’t assured that it might take place, pointing out that the retaliation measures rolled out by China are relatively moderate.

However, caution pushed market participants into defensive equities, such as utilities as well as telecoms that went down by less than 1%, although left the broader market behind because they are considered to be less vulnerable a deterioration in the world’s trade.

Euro zone indexes, with the export-sensitive DAX dived more 1.8%, although stood above early March minimums, while the FTSE declined 1.1% to fresh 15-month minimums hit on the back of a growing pound.

On Friday, among the few top notch performers were equities in metal miners Randgold, Polymetal and Fresnillo. All of them gained 0.5%-1.5% because the gold price tacked on the back of soaring demand for safe haven assets.

Among the companies, affected by American aluminum and steel tariffs, equities in car makers Fiat Chrysler as well as BMW inched down respectively 2.5% and 2.1%, while steel tube maker Tenaris declined 4.1% and ThyssenKrupp lost 2.7%.

Additionally, GSK tacked on 2.9% having pulled out of the bidding fight for Pfizer's health business.

 

 

Similar

Latest news

The Yen Sets New Lows
The Yen Sets New Lows

The Japanese yen fell to its lowest level against the US dollar in 33 years. Read the full report to learn the next target for USDJPY!

BlackRock CEO Supports The USD
BlackRock CEO Supports The USD

BlackRock CEO forecasts the Fed may have to raise rates further. The US dollar index (DXY) gains 130 points today. Read the full report to get more fresh news and technical analysis!

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera