قالب وردپرس درنا توس
Home / Business / European equities close lower due to global declines

European equities close lower due to global declines





Getty Images

Tourists and visitors gather around the Trevi Fountain in downtown Rome.

Europe's most important stock market closed on Tuesday after the sell-off of Chinese stocks and sparked losses in global markets. As expected, the European Commission called on the Italian Government to revise its budget, which raised some concern.

Bad corporate results from a number of companies also weighed on sentiment.

How did markets work?

The Stoxx Europe 600

SXXP, -1.58%

slipped 1.6% to 354.06, after a loss of 0.4% on Monday.

Germany's DAX 30

DAX, -2.17%

fell 2.2% to 11,274.28, while France's CAC 40

PX1, -1.69%

fell 1.7% to 4,967.69. The UK's FTSE 100

UKX, -1.24%

fell 1.2% to 6,955.21.

Italy's FTSE MIB Italy Index

I945, -0.86%

dropped 0.9% to 18.802,47

The Euro

EURUSD, + 0.1047%

was stable at 1.1488, compared with 1.1467 late Monday, while the pound

GBPUSD, + 0.2237%

jumped from $ 1.2966 to $ 1.3003.

What drove the markets?

Europe stocks were stuck in the grip of a global defeat that drove nervous investors to putative harbors. like the Japanese yen

USDJPY, -0.56%

EURJPY, -0.46%

and gold

GCZ8, + 0.94%

China started the action on Tuesday as the Shanghai Composite Index

SHCOMP, -2.26%

gave up a two-day rally, losing 2.3% and tapping stocks across the region as the government's efforts to boost the market have failed.

On Wall Street, US stocks traded sharply lower.

Necessity to Know: China's stock sell-off could cause much more chaos before it's over: Merrill Lynch

Geopolitical tensions have also crept into the psyche of traders after the Turkish president claimed The murder of journalist Jamal Khashoggi was planned by the Saudi Arabian government.

In the immediate vicinity, the European Commission has rejected the Italian budget proposal, although this step was largely expected.

Do Not Miss: A Top-Startup CEO in London Marks Brexit's Biggest Threat to His Industry

What did strategists say?

Fawad Razaqzada, market analyst at Forex.com, said if global equity weakness continues, US stocks could be the next big domino to outperform the rest of the world. Thus, they might have some catching up to do on the bottom.

"In the event that the bulls reappear, then the German DAX, which was hit hardest by the European indices (partly because of worries about Italy and fears about the demand for German luxury cars from China) – could be the one looking for potential outperformance, "he said in a message to clients.

Stock movers

Shares of ams AG

AMS, -26.33%

sank 26%, the top sinker for the Stoxx Europe 600, after the Austrian chipmaker warned of its fourth quarter late Monday and looked grim in 2019.

Atos SE

ATO, -22.22%

was another big loser as the French information technology company lowered its revenue forecast for 2018.

Bayer AG

BAYN, -9.29%

slipped 9.5% after a California judge upheld the verdict of a jury that linked the company's Roundup weed killers to the cancer Damage reduced by $ 200 million.

Schindler Holding AG

SCHP, -8.98%

slid 9% after the Swiss elevator manufacturer failed to meet expectations for the third quarter.

On the top stocks of Travis Perkins PLC

TPK, + 4.08%

rose 4.1% after the construction equipment company posted a revenue increase.

Want to receive news about Europe in your inbox? Subscribe to MarketWatch's free Europe Daily newsletter. Sign up here.


Source link