On Monday, as leaders from the EU Commission and Britain had again failed to break off the impasse over a high-stake post-Brexit settlement deal with less than three weeks remaining before a December 31 deadline, a basket of major European indices had rounded off the session broadly lower with London’s blue-chip FTSE 100 wrapping up the day flatlined, mostly due to a heavily battered British currency.
On top of that, a rapidly escalating tension between Washington and Beijing following a latest Trump Administration move to blacklist eight Chinese companies over potential national security threats, added to further wintry chills on investors’ appetite.
Adding further strains on to a number of European stock indices, Downing Street officials were quoted saying that United Kingdom had been prepared to leave the bloc without a trade deal, eventually leading to a mass-scale sell-off wave over growing uncertainties on governance of $1 trillion worth of trade per year between EU and UK.
Apart from that, in the latest flashpoint of a perilous plunge in investors’ sentiments in context of a soaring pandemic cases across Europe and the US, German Ifo survey data had predicted a gloomier industrial production over the upcoming months.
European shares ebb out on Brexit worries, US-China trade tension
Citing statistics, in the day’s European market closure, regional pan-European STOXX 600 shed 0.30 per cent to 392.84 and London’s FTSE 100 ended the day flatlined, largely backed by a sharply softening British currency, while French CAC 40 and Frankfurt’s DAX had winded down the day 0.64 per cent and 0.21 per cent lower respectively.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 lost 0.57 per cent to 8,275.60, while Italy’s FTSE MIB faltered 0.32 per cent to wind up the day at 22,107.8. Meanwhile, as UK policymakers had also petered out possibilities of an extension of deadline for post-Brexit trade negotiations, a senior market analyst at OANDA in New York, Edward Moya said, “The true deadline (for a deal) will likely be at some point at the end of this week, which could mean a week full of drama. ”