On Friday, a basket of European bourses had rounded off the day higher as investors appeared to be looking beyond the economic threats that could be stemmed off a no-deal Brexit, while signs of an uptick in merger & acquisition activities had overshadowed the lingering concerns linked to a slowdown in economic recovery from a pandemic-led pandemonium.
In point of fact, European stocks were found to be hovering around a holding pattern since June this year, while a stronger euro had heightened up the costs of eurozone exports, eventually cornering the export-oriented eurozone stocks.
European investors brace for no-deal Brexit
Aside from that, as the EU Commission had been preparing to end a nearly four-year long Brexit saga amid UK Government’s utter reluctance to enter into a trade treaty, stoking fears of a no-deal Brexit, Brexit talks were thought to have become another loose end for the European investors.
Meanwhile, referring to a growing uncertainty over UK-EU Brexit talks which would unlikely to bear fruits by the Brexit deadline of end-2020, a market analyst at AxiCorp., Milan Cutkovic said, “The Brexit talks could turn into another major headache for investors.
UK Prime Minister Boris Johnson still intends to rewrite the UK’s Brexit treaty, even as the EU is threatening to take legal actions and the chances of securing a trade deal are decreasing”. Citing statistics, on the day’s market closure, the regional pan-European STOXX 600 rose 0.1 per cent, but remained 1.8 per cent down for the week, while London’s FTSE 100 added 0.48 per cent to 6,032.09, French CAC 40 soared 0.20 per cent to 5,034.14 and Frankfurt’s DAX shed 0.05 per cent to 13,202.84.
Elsewhere in the Europe, Italy’s FTSE MIB winded down the day almost flatlined at 19,820.75, while Madrid benchmark IBEX 35 shrugged off 0.80 per cent to wrap up the day at 6,943.20 However, amid rising tension over the Brexit talk frontiers, defensive stocks such as healthcare, cyclical goods, telecoms and real estates had been edged higher on Friday and energy stocks retreated following another week of decline for oil and natgas futures’ prices, while merger and acquisitions had played a central role with Altice Europe surging 24.4 per cent and Swiss frozen baked goods maker Aryzta climbing as much as 12.5 per cent following media headlines that revealed progresses in takeover deals for both Aryzta and Altice Europe.