Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
Last updated 56 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
Stocks down as trade fears hurt Europe
August 03, 2018
 Print    Send to Friend

LONDON: Fears of an escalating trade dispute between the United States and China spread from Asian markets to Europe on Thursday, triggering a fall in bonds yields and stocks while a batch of disappointing corporate results also weighed on sentiment.

Germany’s blue-chip index DAX, which is seen as a trade war proxy, fell 1.5 per cent in midday trading while the broader pan-European STOXX 600 was down about 0.8 per cent.

A number of poor trading updates, notably by German industrial conglomerate Siemens, also help drag down European bourses.

US stocks futures for the S&P, Dow Jones and Nasdaq were also trading in negative territory with losses between 0.5 per cent and 0.7 per cent.

Euro zone government bond yields edged down. Borrowing costs in Germany and France pulled back from seven-week highs as demand for safe-haven debt grew after the US administration increased pressure on China by proposing a higher 25 per cent tariff on $200 billion worth of Chinese imports.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.6 per cent down, dragged down by a 1.8 per cent fall in Chinese H-shares.

Analysts blame the current retreat in world stock markets on uncertainty around the trade policy of the Trump administration, while recent corporate results and economic data are seen overall as encouraging.

“One needs to have a strong gut feeling to invest in this environment and in August, I doubt many people will have one,” said Herve Goulletquer, deputy head of research at France’s La Banque Postale Asset Management in Paris.

He added that investors badly needed a “framework of interpretation” to read through the trade statements of the Trump administration and the poor visibility on that front was holding markets back.

Sterling briefly and only modestly rose after the Bank of England hiked interest rates above their financial crisis lows and signalled it was in no hurry to tighten policy further with an uncertain Brexit on the horizon.

The pound rose from $1.3081 to $1.3129 after the decision but quickly gave up its gains and was trading at 1.3050 by 1150 GMT.


Add this page to your favorite Social Bookmarking websites
Post a comment
Related Stories
US stocks fall ahead of G20 summit
NEW YORK: US stocks fell on Thursday as investors turned risk averse in the run up to US-China trade talks at the upcoming G20 Summit after President Donald Trump said th..
World stocks climb on hopes of trade truce
LONDON: Hopes for a thaw in US-China trade ties at the upcoming G20 summit helped world shares inch to a one-week high on Wednesday, though fears of a no-deal outcome wei..
World stocks try to find feet after tech-driven rout
LONDON: World stocks steadied on Wednesday and Wall Street was set to open firmer after the previous session saw $1 trillion wiped off the value of leading tech shares, ..
World stocks rally on Brexit deal reports
LONDON: Global stocks began the new month buoyantly on Thursday after a brutal October while the pound rallied on reports that Britain and the European Union were close t..
US stocks flat as Italy worries weigh
NEW YORK: US stocks treaded water on Tuesday, pressured by worries of a eurozone breakup after anti-euro comments from an Italian lawmaker. Italy would enjoy more favo..
Advertise | Copyright