European shares totter as EU commission curbed bloc’s growth forecast

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European shares totter as EU commission curbed bloc’s growth forecast

On Tuesday, the 7th of May 2019, the European shares were heavily battered, after risk appetite had taken a havoc-scale hit on EU Commission’s trimming of eurozone growth forecast, amid an pre-existing pessimism among the investors over the looming uncertainty on the path ahead for the Sino-US trade talk.

According to data released on Tuesday (May the 7th), the EU Commission had now been expecting to grow eurozone economy by 1.2 percent in 2019, while it had also halved the growth forecast for Italy to 0.1 percent, which had already been down to a recession.

Meanwhile, adding further strains over investors’ hope of reaching a trade deal as early as by this weekend, a Chinese Foreign Ministry spokesman had been quoted saying on Tuesday (May the 7th), that, raising tariff and heightening pressure could not be a basis to reach a trade deal, adding that mutual respect could help these economies reach a rational deal, which seemed to be unlikely at this point, given deep cultural differences between United States and China, and Trump’s favorite tweet over the recent past, “Dealing with the Chinese is always difficult!” In point of fact, amid a basket of geo-political bitterness casting its spell over the investors’ optimism, the regional Pan-European index, STOXX had shed more than 1.4 percent and posted its worst daily plunge in more than three months.

At Tuesday’s (May 7th) market wrap-up, London’s FTSE 100 had closed the day down by 1.63 percent to 7,260.47, mostly wobbled by uncertainties over energy stocks, while Germany’s trade-sensitive DAX had dwindled by 1.58 percent to 12,092.74 with its stocks exposed to China fell by 1.4 percent.

Meanwhile, French CAC 40 had also curbed 1.60 percent of its previous gains to 5.395.75, and volatility index had surged remarkably in light of an escalating geo-political tension alongside uncertainties over financial and energy stocks.