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European equities nearly neglect American trade war salvo
On Tuesday, European equities started nearly intact right after American leader dared to slap 10% levies on an extra $200 billion worth of China’s imports, and also warned of duties on more goods if the Asian country got down to retaliatory actions.
As a matter of fact, the European STOXX 600 headed south by 0.02%. Besides this, generally considered to be an indicator of large exporters as well as car makers that are seen probably to suffer heavily from the everlasting global trade conflict, Germany's DAX managed to tack on by 0.02%.
As for other equities s in the European Union, France also made its way to positive territory. For example, the CAC 40 index ascended by up to 0.1%.
Senior American economist at Pictet, Thomas Costerg told ahead of the American trade announcement that market participants might be well prepared for it and accept the point of view that the current presidential administration had demonstrated some restraint as it could have imposed even higher levies.
Thomas Costerg pointed out that 10% could eventually come as a relief. Besides this, the expert added that such a figure would turn out to be negative, although manageable.
Zalando, which happens to be the biggest pure online fashion retailer in the European Union, appeared to be the worst performer. As a matter of fact, it headed south by 20% ending up with a reading of 33.7 euros. It reportedly occurred due to a long and hot summer that had its 2018 outlook cut.
The top performer was represented by Swiss chemical group Clariant, which managed to ascend by 6.5%, having told it would have its high-performance materials business merged with that of fresh anchor shareholder Saudi Basic Industries Corporation for the purpose of focusing on higher-value speciality chemicals.
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Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.