After weathering a wave of whiplashing storms on Wednesday’s (July 31st) and Thursday’s (August 1st) market while a majority of global financial markets were nudged into a Nile of Red following a hawkish Fed rate-cut and Trump’s China tariff, European shares finally breached its breaking point on Friday, the 2nd of August 2019 and a swath of slumps in European shares ranging from automakers to miners to chipmakers led a majority of European bourses to post their largest intra-day plunge in more than seven months.
Besides, after China’s newly appointed envoy to United States had slated harsher retaliatory measure from Beijing in a near-term outlook following Trump’s latest China tariff, regional Pan-European STOXX 600 eased more than 2.5 percent to hit a fresh six-week low, while Germany’s trade-sensitive DAX was dwindled more than 3.1 percent following steep losses of its shares heavily exposed to China.
Aside from that, followed by a havoc-scale tottering of luxury goods makers largely dependent on Chinese imports, Paris’s CAC 40 fell by 3.6 percent. Elsewhere in Europe, beside the banks of the Tyrrhenian Sea, Italy’s FTSE MIB shed 2.41 percent to wrap up Friday’s (August 2nd) market at 21,046.86, while at the heart of Spain, Madrid’s IBEX 35 soured 1.56 percent to 8,897.60 on Friday’s (August 2nd) market curtain off.
Meanwhile, addressing to a raft of risks of a Sino-US trade-talk dependent market environment, a senior economist for eurozone at ING in Amsterdam, Bert Colijn said, “When the global economy seems to be quite dependent on the outcome of trade negotiations, that would almost necessarily mean the markets are quite volatile as the negotiations progress. It’s a result of the fact that politics has taken center stage for the macro outlook. ”