European shares steady after upbeat PMI data, London lags

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European shares steady after upbeat PMI data, London lags

On Thursday, the 22nd of August 2019, a basket of European shares ended the day in a downbeat note, while Italy climbs over signals of a possible coalition government with opposition center-left Democratic Party (DP) in a near-term outlook, meanwhile currency-dependent London’s FTSE 100 had faced off heavy losses after Great Britain Pound added 1 percent on Thursday (August 22nd) over optimism of a Johnson-Macron talk where French PM Macron had left the door open to an Irish backstop.

Meanwhile, Thursday’s (August 22nd) euro zone markets had reacted steep caution ahead of a Fed Chair Jerome Powell’s Jackson Hole speech on Friday (August 23rd), while would likely to proffer clues on US Central Bank’s move towards its interest rate policy.

Aside from that, despite an upbeat Purchasing Managers’ Index (PMI) data in Eurozone for both service sector and manufacturing sectors, Frankfurt’s trade-sensitive DAX failed to shrug off a weaker opening and ended the day just a notch shy of a 0.50 percent lower.

Concomitantly, there had been a flurry of upbeat euro zone data released on Thursday (August 22nd), but investors appeared to be too afraid to bet on an aggressive rate cut policy of Federal Reserve despite a cascade of horrendous economic data but US employment figures, while several analysts were quoted saying that even traders were saving their ammunitions for further market turmoil alongside US Central bank.

Nonetheless, adding that Thursday’s (August 22nd) data might not be sufficient to wipe out recession fears, a chief economist at Berenberg, Holger Schmieding said on Thursday’s (August 22nd) market wrap-up, “What we are seeing is the service sector holding up comfortably well while the industrial slump has got more room to run and even possibly deepen.

This data is not going make recessionary concerns worse, but it also won’t make them vanish anytime soon. We are still far away from any stabilization and it could possibly drag on till we see at least a partial trade deal between the U.S.

and China. ” Quoting statistics, on Thursday’s (August 22nd) market closure, London’s FTSE 100 shed 1.05 percent to 7,128.18, Frankfurt’s DAX lost 0.47 percent to 11,747.04, while French CAC 40 ended the day flatlined to 5,388.25.

Elsewhere in Europe, Italy’s MIB FTSE lost 0.14 percent to settle down at 20,816.99 after rising as much as 0.91 per cent during midday European trading hours, while Madrid’s IBEX 35 added 0.17 percent to wind down the day at 8,716.40.