On Tuesday, the 26th of February, 2019, the European shares had fallen firmly in the negative territory, as the renewed optimism regarding US-China trade deal, which had been keeping the stocks cheering and lifting European shares to October highs, had cooled off, while the FTSE 100 was sagged largely by a Pound Sterling rally, posting its best level since October 10th at the day’s closure, after testing June 11th high during the late European trading sessions.
The Pan-European STOXX 600 had shredded off 0.2 percent of earlier gains after testing its highest level since October 9th, on Yesterday (February the 25th). The FTSE 100 was down by 1.1 percent at the mid-day European trading session, while GBP was surging to its multi-months high at 1.3285 against the American dollar.
However, the London index closed the day 0.45 percent lower, while Paris’s CAC 40 posted a gain of 0.13 percent to 5,238.72 and trade-sensitive Frankfurt’s DAX 30 climbed 0.31 percent to 11,540.79. As a majority of FTSE listed company earnings came from abroad, the London index is often pressurized by a stronger Pound.
Tech, auto and mining sectors, which had been largely exposed to US-China trade war, were amongst the biggest losers on Tuesday, February the 26th, while healthcare sector posted the biggest plunge, down by 0.18 percent.
Head of research at WisdomTree, Chris Gannatti, had been quoted saying that the investors had been realizing that a complete resolution of the tariff war would still take a while.
“On one hand it’s good to have these positive signals, but on the other hand the distance from where we are at this moment to a full deal that’s completely done and fully signed off, it’s not something that would happen in the coming months,” added Gannatti.