European shares rise on defensives’ aid despite glim market backdrop


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European shares rise on defensives’ aid despite glim market backdrop

On Friday, the 10th of May 2019, most of the European indices had posted gains, while investors had sought safety on defensive stocks amid persisting concerns over Sino-US trade war and a sluggish EU growth. Despite steep losses seen among the US peers of European stocks after US President Donald Trump had dashed hopes of salvaging a last-minute trade deal, the European indices had managed to avert a downswing, as European investors had shuffled their stock holdings on the second day of Sino-US trade talk while bracing for more volatility.

Meanwhile, a torrential wave of defensive buyout had saved the day for the European indices. Although, the Pan-European STOXX 600 had gained 0.3 percent on Friday’s (May 10th) market closure, the regional index had still posted its largest weekly decline this year, winded down the week 3.4 percent lower after heavily tormented by trade worries.

Adding that an escalation of US-China trade would likely to take a death toll over global economy, a chief investment strategist at investment management firm, Fiera Capital, Julian Mayo said, “If things do escalate then this will have an impact of around 0.5 percentage points of global GDP and that would not be inconsiderable”.

Preponderantly clinging on to the defensive stocks, on Friday’s (May 10th) market closure, UK’s FTSE 100 had closed the day flatlined, while Germany’s DAX had added 0.72 percent and French CAC 40 rose by 0.27 percent.