European stocks nosedive to two-month lows as China-worry plagues market

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European stocks nosedive to two-month lows as China-worry plagues market

On Monday, the 5th of August 2019, a majority of European bourses rounded off the day deep in the reds, while a deepened Sino-US trade tension following a devaluation of Chinese offshore Yuan alongside China’s sanction on US farm good imports spurred a flurry of global-scale sell-off on equity trading markets across the world, dragging mining, technology and luxury European stocks down to their multi-months lows.

In point of fact, investors’ optimism was dampened further on Monday (August 5th) after US President Donald Trump himself accused China of “currency manipulation” and dubbed it as a “major violation” to international trade practice.

Meanwhile, adding that European bourses alongside global financial markets had been reacting negatively to a gauge of geo-political uncertainties over additional tariff and currency manipulation issue, a Managing Director at US-based New Vines Capital, Andre Bakhos said, “Today’s move puts added pressure on the equity markets globally because obviously ...

China is not giving in, China is fighting back. Nobody likes this uncertainty”. Quoting statistics, on Monday’s (August 5th) market closure, the regional Pan-European STOXX 600 dropped by 2.3 percent, while the regional benchmark index had posted its biggest two-day plunge in more than 3 years, as traders were hurrying on to safe-haven assets likes of government bonds after brushing aside riskier shares exposed heavily to China trading.

Elsewhere in Europe, London’s FTSE 100 faltered 2.47 percent to 7,222.85, while French CAC 40 curbed 2.19 percent to 5,241.55 and Frankfurt’s trade-sensitive DAX dropped 1.80 percent to 11,658.51. Besides, Italy’s FTSE MIB fell 1.30 percent to 20,773.30, while Madrid’s IBEX 35 shrugged off 1.35 percent to 8,777.20 and Swiss market index or SMI tumbled 2.08 percent to 9,599.43.