European stocks skid after three-day hiatus following worries over US-China tensions

0
69


European stocks fell on Monday, reacting after a three-day hiatus to rising trade tensions between the United States and China and to optimistic US technology prospects.

The German DAX
DAX,
-3.62%

3.5% drop and the French CAC 40
PX1,
-4.37%

fell 4.1%.
The U.K. FTSE 100
UKX,
-0.54%

0.4%, the London Stock Exchange being open Friday.

The action came when the United States threatened to impose tariffs on China or take other measures in response to the coronavirus epidemic. Secretary of State Mike Pompeo said Sunday that there was “enormous evidence” that the virus came from a laboratory rather than being transmitted by animals.

Data released Monday has shown how damaging the coronavirus blockages have been to the economy. Italian manufacturers ‘purchasing managers’ index fell to a record low of 31.1 in April, and the Spanish manufacturing PMI fell to 30.8, on scales where readings below 50 indicate worsening conditions .
Professional forecasters expect a 5.5% drop in euro area gross domestic product this year, according to an estimate compiled by the European Central Bank, followed by a 4.3% recovery in 2021.
“Overall, the V-shaped recovery that is now implied by stock market valuations seems unrealistic and investors may be underestimating the depth and duration of this crisis. Think of the number of small businesses that will shut down permanently or operate at reduced capacity for months, the long-term impact on spending of the explosion in unemployment, the lasting behavior shock for some consumers and what the collapse of American relations -Chinese means for (de) globalization, “said Marios Hadjikyriacos, financial analyst at XM.
Actions in motion, actions of Thyssenkrupp
TKA,
-15.21%

on September 16, the Financial Times announced that Cinven and Advent were seeking other investors for the 17.2 billion euro elevator contract for Thyseenkrupp, which was the biggest European buyout contract in a decade.
Telefónica
TEF,
+ 2.48%

shares rose 3% after declaring to be in talks with Liberty Global
LBTYA,
+ 14.72%

on the merger of their British telecommunications branches, O2 United Kingdom and Virgin Media.
Lonza
LONN,
+ 2.89%

increased 3% as the Swiss chemicals and biotechnology company said it would manufacture Moderna’s coronavirus mRNA-1273 vaccine.
Dow Jones Industrial Average Futures
YM00,
-1.35%

lost 304 points as the caution of Berkshire Hathaway CEO Warren Buffett weighed on sentiment.

LEAVE A REPLY

Please enter your comment!
Please enter your name here