Europe ends lower as Fed-optimism short-lived, trade tension drags on


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Europe ends lower as Fed-optimism short-lived, trade tension drags on

On Wednesday, the 10th of July 2019, a stack of European stock exchanges had wrapped up lower for straight four sessions in a row, as global trade tensions alongside an upcoming EU-US trade spat had overshadowed downbeat comments from US Federal Reserve Chairman, Jerome Powell.

In fact, following Powell’s dovish comments on trade uncertainties and global growth concerns that amped up possibilities of a rate cut later this month and had echoed leads of global policymakers of further injections of monetary stimulus into the financial system, financial markets jumped and lifted almost all of the European stock indices into positive territory, but, the rally was shortlived and most of the European bourses were slipped back into the reds, as investors appeared to be hesitant amid a handful of warnings of fund managers and analysts in context of a looming recession risk over a number of economies in Europe alongside China, South Korea and Japan.

At Wednesday’s (July 10th) market closure, the regional Pan-European STOXX 600 had wrapped up the day 0.20 percent lower, while blaming European central banks behind latest seesawing of European bourses, a market analyst at CMC markets, David Madden said, “So far the central banker hasn’t given much away in terms of clues as to possible changes to monetary policy, although earlier in the day, he warned that uncertainties have continued.

Some dealers are sitting on their hands until they get a clear view from Powell”. Quoting statistics, on Wednesday’s (July 10th) market wrap-up, London’s FTSE 100 had winded down the day flatlined at 7,536.17 and trade-sensitive Frankfurt’s DAX ended the day down by 0.53 percent to 12,370.98, while French CAC 40 had shrugged off 0.07 percent to 5,568.07 after rising as much as 0.65 percent during late European trading hours.