On Tuesday, a stack of European stock indices had wrapped up the day in a much downbeat note, while an escalation of Brexit drama following German Chancellor Angela Merkel’s comment that a Brexit deal appeared to be impossible by October 31st deadline, had added to investors’ worries.
Aside from Brexit frets, European shares had nosedived sharply after release of a South China Morning Post saying that the deputy-level talks might conclude prematurely, as a US blacklisting of more than 50 Chinese companies including a swath of sectors ranging from artificial intelligence start-ups to China’s state governments alongside multiple state intelligence agencies over seemingly vague issues likes of mistreatment of Chinese ethnic Muslim group Uighur.
Amid such a horrendous trade outlook across the globe, a series of disappointing corporate news in Europe had also been haunting investors’ optimism, suggested analysts. Meanwhile, referring to a slanderous outlook of a Sino-US trade talk which could again break off prematurely amid a stubborn stance of US President Donald Trump alongside his administration, a senior market analyst at IG Group, Joshua Mahony said on Tuesday’s European market closure, “Coming just two days ahead of those trade talks it essentially makes one think we’re going to be back in situation where we see trade talks breakdown.
(The AI blacklist) is a strategic move from the U.S. and its likely to get some sort of retaliation from China. ” Quoting statistics, in the wake of a withering geopolitical milieu across the globe, the regional pan-European STOXX 600 shed 1.1 per cent, while biotech company Qiagen’s plunge of 21 per cent following a warning on sales in Q3, 2019, had been leading the losses of European shares.
On Tuesday’s (October 8th) market wrap-up, London’s export-oriented FTSE 100 shed 0.76 per cent to 7,143.15, Frankfurt’s DAX fell by 1.05 per cent and Madrid IBEX 35 tumbled 1.15 per cent to 8,940.10. Elsewhere in Europe, French CAC 40 curbed 1.18 per cent to round off the day at 5,456.62, while Italy’s FTSE MIB had shrugged off 1.14 per cent to 21,405.73.