On Tuesday, the 9th of July 2019, a gauge of global stocks had botched to post a gain for three consecutive days in a row, while a warning of German Chemical Giant BASF alongside waning US interest rate cut hope had been tempering investors’ sentiment.
Besides, while geo-political issues had been casting shadows over the condition of global economic health, traders were eyeing a Wednesday (July 10th) comment from US Federal Reserve Chairman Jerome Powell about possible directions of US interest rates.
In Europe, German Chemical giant, BASF’s shares were plummeted by almost 7 percent after it had blamed an exasperated Sino-US trade spat behind its profit plunge this year, while Deutsche bank fell more than 4 percent after dropping 5.4 percent yesterday (July 4th) over a structural reform involving havoc-scale trimming of its workforce.
Nonetheless, adding that market had shown excessive reactions to US rate cut bets, Morgan Stanley wrote in a client note, “Both from a bottom-up and top-down perspective, equity market valuations appear far too ambitious.
Indeed, companies have begun cutting their 2019 profit forecasts, citing the trade conflict as a reason”. Quoting statistics, on Tuesday’s market closure, Nikkei was up 0.14 percent and Hong Kong was down by 0.76 percent, while Bombay Stock exchange remained flatlined.
A majority of European stocks had wrapped up Tuesday’s (July 9th) market deep in the red, while London’s FTSE 100 was dropped 0.33 percent, Germany’s trade-sensitive DAX was down by 0.98 percent, while French CAC 40 shed 0.34 percent.
Aside from that, Wall St. had also opened lower with Dow losing more than 0.47 percent and S&P fell 0.31 percent so far during the early morning US trading hours.