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On Wednesday, fears about American bond markets indicating an upcoming recession as well as a still escalating trade conflict between the world's two leading economies brought European equities down after a 3% decline on Wall Street.
The STOXX 600 went down by nearly 1.2%, reaching its lowest value since November 23. Britain’s FTSE 100, France’s CAC 40 as well as Germany's DAX - all slumped by 1.3%.
As for financials, they turned out to be the biggest drag on EU equities because traders dumped sectors extremely sensitive to economic surge. Moreover, Europe's bank index SX7P headed south by 1.7%, which is in line with tech SX8P right after the highly valued American tech sector sold off.
German car makers Volkswagen, BMW, and Daimler went down by 0.5%-0.8%, outperforming the DAX because market participants digested what seemed a relatively upbeat result from auto executives' gathering at the White House.
US leader put pressure on the car makers to ramp up investments in America, something the executives told they intended to do, although wouldn’t be able to do if the current US presidential administration went ahead with threatened levies.
Larry Kudlow, White House economic adviser told that he didn’t think that car levies were inevitable.
Equities in valve manufacturers Rotork as well as Weir, supplying the crude industry, went down by 3%- 5% after American energy services company Schlumberger came up with a warning on Tuesday, telling that a sink in fracking activity would affect its North America profits.
By the way, M&A news appeared to be a driver too.
Stocks in Shire managed to rally by 4% at the start, then trimming profits to trade up 2% right after shareholders of Japan's Takeda accepted the takeover of the London-listed pharmaceutical company.
Hargreaves Lansdown went down by 5.4% because Morgan Stanley had its rating downgraded to underweight.
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…
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…
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