European Equity Market Handover: ‘Wealth’ of Trump tweets dents attempted bounce
Ken Odeluga May 10, 2019 2:29 PM
Stock market snapshot as of [10/5/2019 12:49 PM]
- The @realDonaldTrump Twitter feed has been very active, taking some wind out of the sails of Friday’s stock market bounce
- European shares managed to stabilise with the help of standout gainers like Germany’s ThyssenKrupp, though U.S. markets were thrown off balance
- The U.S. President has been keen to push his view—not backed by any normal understanding of economics—that tariffs will “bring in FAR MORE wealth” to the U.S. “than even a phenomenal” trade deal
- Wall Street futures managed to reach positive territory earlier, but have now succumbed to Trump’s onslaught of well over 30 tweets within an hour
- Market scepticism about the possibility of a breakthrough on day two of talks in Washington with China’s Vice Premier Liu Hu was already high
- The key takeaway for investors is that a President endorsing tariffs over a trade deal is negative for the chances of one being sealed anytime soon. All that’s left is to buckle up for the final downswing of the week
- Uber’s IPO looms large over a quietening earnings season on both sides of the Atlantic. After the stock priced at the lower end of the planned range, the focus is on whether FOMO alone can deliver a big uplift from its starting price of $45 a share
- Germany’s ThyssenKrupp followed the spin-off trend of fellow DAX industrials with plans to list its elevator unit as it reported so-so earnings. The news was just in time to offset dented sentiment after regulators blocked its planned merger with India’s Tata. The shares have surged 17% higher
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