With little to take their mind off their trade war concerns the European indices continued to suffer this Friday.
Though Trump’s tariff announcement is obviously the main catalyst for the market carnage of the last 24 hours – with the return of the war-hungry John Bolton as national security advisor also a contributing factor – that China is yet to reveal its (almost inevitable) retaliatory measures is the thing likely helping the losses remain so acute.
Down half a percent the FTSE was the most reasonable of the region’s indices as the day went on, saved from the excessive loss seen in the eurozone thanks to gains from the likes of Next (LON:NXT) (despite a horrible set of full year figures), Micro Focus (LON:MCRO) and GlaxoSmithKline (LON:GSK). Not that the UK index is good shape at all; lurking just above 6900 it’s still at it worst price since late-2016.
The eurozone was a complete mess. The DAX plunged 175 points, leaving it a hair’s breadth above 11900, while the CAC fell by 1.3%, forcing the French index back below 5100.
How gory this afternoon is will be dependent what the Dow Jones does when the bell rings on Wall Street. Currently the Dow is facing a 75 point decline; that would send it back below 23900, though if the negative momentum that carried through from last night’s Asian session into the morning’s European trading takes hold the index could well see greater losses.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.