On Wednesday, the 26th of June 2019, a stack of European stock exchanges botched to post a gain, extending its losing streak further, after US Federal Reserve had signaled that a much-anticipated July interest rate cut might not be on the cards yet, while mixed trade headlines on Sino-US trade spat had added to investors’ worries.
Following Fed’s signal that an interest rate cut might not come as early as next month, most of the European bourses had witnessed gains of financials including large lenders, which would likely to be benefitted from a higher interest rate, while Real Estate, healthcare and utilities had led the declines on Wednesday’s (June 26th) market.
Referring to an abrupt U-turn of the market momentum following Fed’s Powell’s comment on Wednesday (June 26th), a sales trader at Mirabaud Securities in London, Mark Taylor said, “It feels like there is a bit of a rotation in terms of what has been up in the run up to this weekend’s event has started to fade and vice and versa”.
Quoting statistics, on Wednesday’s (June 26th) market wrap-up, the regional pan-European STOXX 600 index had soured by 0.3 percent, extending its losing streak to a fourth day and had been on-course to stall its three-week gaining streak.
London’s FTSE 100 had wrapped up the day almost flatlined to 7,416.39, Paris bourse was plunged by 0.25 percent to 5,500.72, while the Frankfurt’s trade-sensitive DAX had winded down the day 0.14 percent higher to 12,245.32.
Meanwhile, utilities alongside healthcare had been the worst performing majors with losses of 1.85 and 1.11 percent respective, while energy and technology sectors posted gains of 1.21 and 0.59 percent respectively, over a long-overdue rally of chipmakers and a cruising of crude oil future prices over further escalation of Tehran-Washington tension following Iran’s President Hassan Rouhani’s comment to French President Emmanuel Macron in a phone call on Tuesday (June 23rd) that Iran would not retreat if Untied States sought for a war.