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?
DAX sags abruptly as trade worries affect European equities
Information is not investment advice
On Thursday, European stocks went down because trade tensions between China and America worsened once again. Germany’s key benchmark was suppressed by worries as for the impact of tariff action. Dismal revenue updates from BMW AG and Siemens AG also contributed to the pessimistic mood.
Traders are also awaiting a monetary policy verdict from the BoE. Britain’s main financial institution is highly anticipated to have interest rates lifted for only the second time for a decade.
The Stoxx Europe 600 dived by 0.6% hitting 387.60, finding itself on track for its second loss in a row. On Wednesday, the index headed south by 0.5% having concluded July on a positive note.
The DAX 30 index slumped by 1.71% in Germany becoming the top loser among key regional indexes, losing about 1.7% and hitting 12,519.30 on downbeat financial updates from major companies.
In Great Britain, the FTSE 100 index went down by 0.8% showing 7,588.34 because investors waited for the BOE decision.
The currency pair EUR/USD dipped by 0
Trade tensions between American and China resumed after on Wednesday US leader threatened to lift the proposed duties on $200 billion of Chinese goods to about 25%, which is more than double the initial 10%.
Worries as for the probable hit to exporters enabled to partly relieve pressure on the DAX, Germany’s key benchmark.
In addition to this, the equities of Siemens went down by 4.7% after the German conglomerate’s revenue declined in the third quarter, affected by underperformance at its crude-and-gas unit as well as a higher tax rate.
Among the other divers in Frankfurt, one should mention BMW equities that lost 2.7%, Hugo Boss AG BOSS that inched down by 4.7% following their financial updates.
Additionally, KAZ Minerals PLC KAZ lost 21%.
US Fed comes right on time with the crisis support program announcement. How does the stock market react?
Here are the most important topics that will determine the dynamics of currencies, commodities and stocks on Thursday, April 9. N
OPEC+ is holding a video conference this Thursday to strike a global output cut deal - will that happen?