On Wednesday, American stock index futures headed south because dismal data out of China affected market sentiment, while traders waited for more developments related to the US-China trade conflict…
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.
On Wednesday, Italian stocks led losses in the European Union right after the country's deputy prime minister told that Rome considers breaking EU fiscal rules, thus masking early revenue powered by optimism around the US-China trade conflict…
On Tuesday, another US-China tariff conflict escalation put pressure on Asian stocks, although remarks from American leader that he expects trade talks to be successful backed market sentiment…
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Monday, gold declined because the evergreen buck managed to gain early traction, thus putting pressure on the most popular precious commodity, which has been sticking with the year’s minimums…