European shares extend trade-war driven losses

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European shares extend trade-war driven losses

On Tuesday, the 6th of August 2019, a majority of European bourses had reported a plunge for three straight sessions in a row, while investors seemed to be too fretted to open up new buying positions despite an upbeat German economic data alongside a slight correction of Chinese Yuan.

Nonetheless, calling Monday’s (August 5th) China move to devalue its currency rapidly above 7.10 against an American dollar, a robust show-off of People’s Bank of China (China’s Central Bank) with more than $3 trillion in its foreign currency reserve, more than six times of its nearest competitor, Swiss central bank with foreign currency reserves of roughly $524 billion, analysts were quoted saying that Tuesday’s (August 6th) China’s central bank’s move to rebound Yuan below 7-mark per US dollar was temporary and Beijing could consider shifting its benchmark value against American dollar to 9 per American dollar from currency 7/dollar.

In point of fact, despite a brief rebound of Chinese Yuan alongside upbeat German data failed to uplift investors’ confidence as London’s FTSE 100 shed 0.72 percent to 7,171.69 on Tuesday’s (August 6th) market closure, while Germany’s trade-sensitive DAX dropped 0.78 percent to 11,567.96 and French CAC 40 ended flatlined to 5,234.85.

Elsewhere in Europe, Milan’s FTSE rounded off Tuesday’s (August 6th) with a plunge of 0.68 percent to settle at 20,631.74, while Madrid’s IBEX 35 index shrugged off 0.89 percent to 8,699.40. Meanwhile, the regional Pan-European STOXX 600 index closed the day down by 0.5 percent, posting a plunge for three straight sessions.