On Monday, the 3rd of June 2019, a gauge of European indices had been able to round off the day in an affirmative territory after witnessing a battering early in the European trading hours over steep sell-offs of trade-sensitive stocks such as technology following latest turn of events in Sino-US trade conflict.
Trade tensions escalated further on Monday (June 3rd) after Beijing had been quoted saying that it would continue to probe on whether US-based multinational courier service provider had allegedly diverted two legal documents of Huawei Technologies.
Never the less, following release of Chinese Caixin PMI which had indicated a headway on May after falling below 50.0 level in April, market sentiments had improved markedly on Monday (June 3rd) late-morning European trading hours, and the Pan-European STOXX had wrapped up the day 0.4 percent higher, after hitting a three and a half month low earlier in the session.
Germany’s Dax had gained 0.6 percent despite an 8.1 percent tumble of chipmaker Infineon’s share price following the reveal of its purchase of Cypress Semiconductor in a $10 billion buyout deal. In point of fact, healthcare had been the shimmering signs throughout the day for European stocks, while Financials had fallen 0.7 percent, tech stocks toppled 0.3 percent, bank stocks were down by 0.5 percent and travel alongside leisure took a plunge of 0.4 percent.
Quoting statistics, on Monday’s (June 3rd) market closure, London’s FTSE 100 had gained 0.32 percent to 7,184.80, while Germany’s DAX had added 0.6 percent as beforementioned and French CAC 40 remained virtually unchanged at 5,2,41.46.
Citing Monday’s turnaround of European stocks as a relief rally while heading off trade tensions related losses, a market analyst at CMC Markets UK, David madden, wrote in a client note, “Tensions between the U.S.
and China, and the U.S. and Mexico, are still high - the highest they have been recently, so today’s move might turn out to be a relief rally. It has been an impressive turnaround seeing as the major indices were offside this morning, and traders seem to have shrugged off the negative sentiment”.