On Wednesday, a slew of European stock indices had faltered to their one-week lows followed by the reveal of a media headline that the United States had been exploring an option to incline added tariffs on EU-borne products, eventually denting investors’ optimism of a quicker-than-anticipated recovery from the pandemic-driven economic slump.
On top of that, as market participants’ angsts over a pandemic resurgence had been fathomed up further following reveal of reports that the heavily populated areas in Germany was witnessing an uptick in pandemic cases, the regional pan-European STOXX 600 was slumped 2.8 per cent, marking up the index’s second-worst intra-session decline this month, while economically sensitive cyclical indices such as travel & tourism, oil & gas, automakers and lenders, had experienced a tattering header between 3.7 per cent to 4.7 per cent.
Renewed EU-US tariff spat pummels European stocks
As beforementioned, adding further strains to the fretted market participants, Office of the USTR was quoted saying that the United States had been exploring an option to amend a number of levies on EU-borne products and seeking to incline new tariffs on products based on United Kingdom, France, Germany and Spain worth of roughly $3.1 billion, leading to a late-session sell-off wave in a majority of European stock exchanges.
Citing statistics, as a majority of European stock indices had curtained off the day sharply lower with Frankfurt’s DAX leading the losses, London’s FTSE 100 faltered 3.11 per cent to 6,123.69, French CAC 40 had curbed out 2.92 per cent to 4,871.36 and Frankfurt’s DAX had dwindled as much as 3.43 per cent to wrap up the day at 12,093.94.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 had winded up the day 3.27 per cent lower to 7,195.50, while Italy’s FTSE MIB had taken a tattering header of 3.42 per cent to wind down the day at 19,162.98.
Meanwhile, referring to a re-emergence of an acrimonious trade relationship between the United States and the bloc’s major economies which in effect had orchestrated a darker complexion on Wednesday’s European stock indices, a senior market analyst at IG, Joshua Mahony said, “Coming at a particularly difficult time for markets, this breakdown in relations provides another reason for traders to be cautious about the forthcoming period. ”