European shares fall from record high as US, EU trade fresh barbs on auto tariffs

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European shares fall from record high as US, EU trade fresh barbs on auto tariffs

On Wednesday, the 22nd of January 2020, a basket of European bourses had rounded off the day in a much downbeat tone, widening their gaps from record-closing highs reached later last week, as US President had threatened the European Union of inclining higher tariffs on Europe made autos which eventually had dragged the European auto stocks’ index down to a three-month low.

Aside from Trump’s tariff threats at the stage of World Economic Forum in Davos, Switzerland, an ECB policy meet on Thursday (January 23rd) had also pulled the breaks of investors’ optimism. Besides, automobile sectors had been the worst performing in the regional pan-European STOXX 600 on Wednesday’s (January 22nd) market, while following Trump’s tariff threat on European autos which analysts said would unlikely to be another touting of the US President, the auto stocks, .SXAP drooled more than 1 per cent, hitting its lowest level since mid-October.

Meanwhile, addressing to Thursday’s (January 23rd) ECB meet, a senior market economist at Rabobank in Amsterdam, Teeuwe Mevissen said on Wednesday’s (January 22nd) European market closure, “What you normally see before a big event, which is the ECB tomorrow, is that markets are basically not moving too much.

” Citing statistics, on Wednesday’s (January 22nd) European market round off, Frankfurt’s DAX 30 fell 0.30 per cent to 13,515.75 and London’s FTSE 100 faltered 0.70 per cent to 7,563.54, while French CAC 40 winded down the day as much as 1.01 per cent lower to 5,992.47.

Elsewhere in the Europe, Madrid’s benchmark IBEX 35 shed 0.6 per cent to 9,565.60, while Italy’s FTSE MIB faltered 0.66 per cent to 23,695.85 on Wednesday’s (January 22nd) market round off.