The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
Key EU indexes head south
On Wednesday, European stock indexes went down amid uncertainty with the Italian government as well as worsening market sentiment about the everlasting trade talks between the two largest economies of the world.
The all-European index Stoxx 600 went down by nearly 1% during the morning deals, with nearly all sectors as well as large exchanges in negative territory.
Italian FTSE MIB turned out to be the worst performer among national indices, dipping by almost 2% because the sale of government bonds of the country resumed on Wednesday. Uncertainty as for the establishment of the government of the anti-establishment in Rome provoked a more than 5% tumble in the country's basic index, thus sending it on its way to the worst month for 2 years.
Besides this, the DAX index of Germany, which normally gets support against the background of currency weakness, sank by more than 1.4%.
Equities of the base resources sector in Europe led losses in the morning trading, losing about 2.5% in the face of tensions in trade negotiations. The European Union's trade director told on Tuesday that attempts to persuade Washington not to impose duties on imports of steel and aluminum from the European Union seem to have failed.
President Donald Trump actually provided EU producers with exemption from import duties of 25% for steel and also 10% for aluminum, depending on the outcomes of the negotiations. As a matter of fact, the term of release expires on June 1. Additionally, Anglo American, Tullow Oil and ArcelorMittal happened to be the worst performers in this sector - all of them slumped by more than 4% in the middle of morning deals.
The UK company Marks & Spencer managed to rally to the top of the index, gaining more than 2% after it posted its latest performance on Wednesday.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
Jerome Powell made a rare appearance in the public media this Thursday. What did he bring to the audience?