Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

StockBeat: 2nd Thoughts on Trade, Brexit Bring Markets Back to Earth

Stock Markets Oct 14, 2019 10:19
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

Europe’s stock markets were brought down to earth on Monday by Chinese data that showed how much economic activity has slowed reminding participants that it will need more than grand words and handshake deals to revive a global economy hobbled by various trade-related uncertainties.

By 5 AM ET (0900 GMT), the benchmark Stoxx Europe 600 was down 0.7% at 388.84, having soared Friday to its highest since start of the month in anticipation of major progress in both Brexit and the U.S.-China trade dispute.

The German DAX index was 0.5% while the U.K. FTSE 100 was down 0.4% and the midcap FTSE 250, made up of more U.K.-focused companies, fell a more pronounced 1.1%, as hopes regarding Brexit were scaled back.

Spain’s IBEX 35 also fell 0.5%, led by its banking sector, after stiff sentences handed down to Catalan nationalists for their role in Catalonia's attempted secession reminded investors of the ongoing political risks there.

Data released earlier showed China's imports falling at the fastest rate in three years, while the euro zone's industrial output in August was down 2.8% on the year, despite a monthly rebound of 0.4%. European Central Bank vice president Luis de Guindos said he didn't expect the euro zone, which has been hit badly through its exposure to Chinese and British demand trends, to slip into recession.

Over the weekend, it became clear that the deal agreed between U.S. and Chinese trade negotiators was little more than a bare minimum needed to manage expectations.

“There is a five week period for the two sides to write down exactly what they agreed to in the meeting,” said ING economist Iris Pang in a morning note. “This raises questions about how much "progress" has really been made.”

With the market bracing for an earnings season that is expected by many to show profits falling among European companies, the need for a breakthrough on Brexit has seldom been greater. But that too looks to be up in the air after the EU’s top negotiator Michel Barnier reportedly told EU diplomats at the weekend that the U.K.’s latest proposals on managing the Irish border after Brexit weren’t workable.

The gloom in public markets has at least presented some opportunities for those with deep pockets and longer investment horizons. U.K. cyber-security firm Sophos Group (LON:SOPH) said Monday it had agreed to be bought by private equity company Thoma Bravo in a deal that values it at $3.9 billion including debt. The shares shot up by over 35% in response, back to the level they were at in June.

Sophos has had a choppy time since listing back in 2015 with a valuation of roughly one billion pounds, although it swung to a profit for the first time in four years in its last fiscal year, and appeared to have exited a soft patch for revenue growth caused by a switch in billing patterns to monthly subscriptions.

StockBeat: 2nd Thoughts on Trade, Brexit Bring Markets Back to Earth

Related Articles

Dow Futures Tick Lower Ahead of Public Holiday
Dow Futures Tick Lower Ahead of Public Holiday By - Jul 04, 2022 1

By Oliver Gray - U.S. stock futures were trading lower during Sunday’s evening deals, following a negative finish for major benchmark averages in the previous week...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Kim Andreasen
Kim Andreasen Oct 14, 2019 11:34
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wow. What a surprise. LOL
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email