European shares pause five-day rally as Trump dampens renewed trade hope

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European shares pause five-day rally as Trump dampens renewed trade hope

On Friday, the 8th of November 2019, a basket of European bourses witnessed an end to their five-day long streak of gains and were pulled off of their four-year peaks after US President Donald Trump had poured cold water over a fresh optimism on Sino-US trade deal saying he had not completely agreed to a tariff ward off in phases as part of a “Phase One” trade deal, which in effect had again fanned the flames of a trade war, as uncertainties were looming on whether the two sides could really get an interim trade deal done by mid-November as expected.

Meanwhile, followed by US President Donald Trump’s offbeat comments, investors were hurried on to defensive stocks and government bonds, catalysing a mass-scale sell-off in late-afternoon European trading hours, as the regional pan-European STOXX 600 took a header of 0.3 per cent on Friday’s (November 8th) market closure after scoring a gain of roughly 2.5 per cent over the last five sessions.

Besides, referring to a flight-to-safety response from the investors following Trump’s doughy comments over rolling back of China tariffs in phases, a market analyst at City Index, Ken Odeluga said on Friday’s (November 8th) European market wrap-up, “The move goes in line with Volkswagen’s (electric) e-mobility initiative.

The comment from the White House in more recent hours are merely conformation of that. The fact that Donald Trump has actually echoed some of these comments is a reason to adopt a defensive position into the weekend. ” Quoting statistics, on Friday’s (November 8th) European market wrap-up, London’s FTSE 100 shed 0.63 per cent to 7,359.38, Frankfurt’s DAX dwindled 0.46 per cent to 13,228.56, while French CAC 40 had managed to wind down the day almost flatlined at 5,889.70.

Elsewhere in the Europe, Madrid’s IBEX 35 index shrugged off 0.57 per cent of its earlier gains to wind up Friday’s (November 8th) market at 9,393.70, while Milan’s MIB FTSE added 0.13 per cent to 23,534.49 on Friday’s (November 8th) market closure.