European Equity Market Handover Risk off breaks out after broken trade deal
Thursday’s session is more definitively ‘risk-off’ than Wednesday’s
Share this:
Stock market snapshot as of [9/5/2019 2:02 PM]
- A ‘broken’ trade deal with China, according to Donald Trump, another salvo of North Korean test missiles and the weakest auction of benchmark U.S. Treasurys in a decade seal the impression of Thursday’s session as more definitively ‘risk-off’ than Wednesday’s
- There’s really only one game in town today and it’s a binary one of ‘chicken’, with the global economy at stake. Either there will be a China-U.S. trade deal or there will not. Deep falls across most global stock market regions suggest that Thursday, the first day of talks scheduled with China’s Vice Premier Liu He, is more important than the second, set for Friday
- If there’s no discernible outcome by Thursday’s U.S. close, stock markets can be expected to extend this week’s downside considerably, well before the planned tariff hike at 12:01 U.S. Eastern Time
Corporate News
- European stocks also had their usual mixed-to-negative set of earnings from heavyweights to contend with. Financial and consumer sectors led the downside
- Shares in one of the larger troubled Italian banks, Banco Popolare di Milano were down 7.1% just now. It reported a 15% drop in net interest income and lower than forecast revenues
- Germany’s Continental AG fell 3.9%, the worst cars & parts industry decliner. The drag is from both trade trepidation and disappointing sales
Upcoming corporate highlights
BMO: before market open
Upcoming economic highlights
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Dow Jones forecast: Stock markets under pressure from multiple sources
When looking at the major tech-heavy US indices like the S&P 500 or the Nasdaq 100, you wouldn’t think that the stock market is particularly weak. Yet, beneath the surface, the market is far from healthy right now. Investors are evidently just piling into the big tech and AI names, and as a result, market breadth is deteriorating. Other indices like the small cap Russell 2000 and the Dow Jones are starting to reflect that weakness.
Nikkei breakout accelerates as yen weakness returns
Nikkei has started October with a powerful breakout, helped by renewed yen weakness and strong upside momentum
S&P 500 Forecast: SPX Continues to Drift Away from Record Highs
Recent trading sessions have done little to restore confidence in the equity market. Over the last four sessions, the S&P 500 has declined by nearly 1.00%, a move that highlights growing short-term weakness and keeps the index moving further away from its record-high territory.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.