On Friday, the 8th of March 2019, the European Stocks had posted their biggest weekly plunge since December, when the market had been experiencing a rough and rumbling downswing amid an eviscerating Sino-US trade war and global growth worry.
However, the growth worry had again enhanced its grasps on Friday (March 8th), as China remained untiring to extend losses and German data distressed the market again, while poor US job growth cemented the fears of a global scale economic slowdown.
On Friday (March the 8th), the Pan-European STOXX dropped 0.8 percent, while posting its largest weekly plunge since Dec. 21, during a pre-holiday sharp sell-offs sweeping the squashes of global markets.
Losses became more luculent in the late European trading session, as US job data posted a steep contraction in the payroll, while reporting 20,000 new jobs against a forecast of 1,80,000.
The slowdown worries had spread into Europe later on the day, as FTSE 100 posted a plunge of 0.74 percent after treading water for most part of the day. Germany’s DAX fell by 0.52 percent, while Paris’s CAC 40 curbed 0.70 percent of previous gains.
Slowdown worry mostly affected the energy sector, as it posted a plunge of 1.81 percent, while both crudes ended up the day more than 1 percent lower after falling as much as 3 percent in the intra-day trading.
Concomitantly, citing an over-interpretation of Chinese trade data amid a Sino-US trade war, which was yet to show any progress except Trump’s touting, a multi-asset strategist at Societe Generale, Sophie Huynh said, “The weakness in soft data since September is starting to impact hard data, so central banks are reacting.
We should not over-interpret the China trade data because we have to take into account Chinese New Year and potential front-loading. ”