Why Virgin Galactic Dropped after Branson’s Flight
Virgin Galactic’s Branson flew to space, but the stock of Virgin Galactic (SPCE) dropped. Why?
European equities rebound
On Friday, European equities rebounded because dismal data from China provoked anxiety over decelerating surge and traders fretted ahead of Saturday's decisive G20 negotiations between American President Trump and China's leader Xi Jinping over trade.
The n STOXX 600 started up, but quickly slumped into the negative, losing 0.3%. As for the DAX, it went down by 0.4% in Germany.
The DAX was braced for its fourth month of losses in a row. That’s its longest downtrend since 2008. As for the pan-European STOXX, it was braced for its second straight losing month due to a gloomy earnings season.
On Friday, China posted its weakest factory surge for more than two years, thus rekindling worries about surge ahead of important trade negotiations.
Autos equities SXAP turned out to be the worst-performing, losing 0.9% because the gloomy Chinese manufacturing data along with anxiety over potential levies affected investors' appetite for the sector.
On Saturday, Xi and Trump were set for negotiations on trade at the G20 summit in Argentina, while German automotive bosses were about to visit the White House next week with the aim of discussing threatened American levies on EU cars.
Car parts makers appeared to be among the worst-performing shares. Hella, Valeo, and Faurecia declined by 2.4%-4.9%.
Daimler suppressed the DAX down with a 2.7% tumble, while peers Volkswagen and BMW went down by respectively 0.9% and 0.8%.
The European automotive sector is currently on track for its worst year since 2011 as traders dump the shares considered to be vulnerable to strengthening protectionism.
Mining equities SXPP went down by 1% after the dismal data from the world's number one metals consumer.
Among the greatest drags on the STOXX one should mention luxury goods conglomerates Kering. Luxury equities have been extremely sensitive to signs of decelerating surge in China, which appears to be the major market for high-end brands.
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