It is evident that simmering trade tensions have pushed European stocks higher.

Sources reveal that with trade tensions simmering down, European stocks have risen. Amongst these were stocks of Old Mutual, which rose by 20%. Among the continental index, Old Mutual rose to new highs, as one of UK’s financial watchdog, which was on its case, finally dropped the lifelong insurance probe on the company altogether. This meant highly positive news for the company. Old Mutual, being an old financial firm, experienced rise in stocks because of the news.

It is also apparent that the global markets are now easing as far as the trade tensions are concerned. The trade tensions between the two largest economies of the world, the US and China, sent things awry and all markets suffered. However, things are easing out now and their positive effect is being felt all over.

Further, Theresa May, on the Brexit front, requested for good will and asked for flexibility from other EU members.

In Europe, the pan-European Stoxx 600 rose by 0.1% and other major bourses also remained positive. Sectors, on the other hand, showed different momentum and sentiments. The banks, like in the US, remained positive and the best performers, as they were up by 0.8%. On the other hand, healthcare stood at the end of the spectrum, as it dropped by 0.15%.

Amongst the stand out equities was the Old Mutual, which rose at the top of the index. This was after UK’s financial watchdog announced that it would drop a lifelong probe in the financial firm and many other insurers. Stocks, as a result, increased by 20% during morning trade.

Contrarily, the IG Group dropped at the end of the Stoxx 600, after it posted its earnings. The group revealed that in the 1st quarter, the revenue dropped by 4.7%, whereas overall, it dropped in levels of client activity and volatility. Their shares dropped by 6%.

Despite what is going on between US and China, it seems the global markets are trying to shrug off these concerns. Just Monday, the US levied 10% in tariffs on $200 billion worth of Chinese goods. This didn’t stop here as China put tariffs on about $60 billion worth of US goods.

In the US banking sector, the gains were driven by the high interest rate. The overall sentiment on Wall Street also showed that the trade war between both countries is not being feared as much as it was before.

Markets in Asia, however remained cautious, as trading stayed mixed on Thursday. The Chinese mainland markets were also somewhat lower.

The business sector and technology sector, however, remain under pressure and it is evident that the pressure is one-sided.  People in the tech sector are also paying attention and trying to facilitate to strengthen their position. For instance, Jack Ma promised the US President that he is going to create about $1 million worth of US jobs.

While trade tensions remain, markets seem to ease out. The changes and differences can be observed in the US and European markets both.

By Pete S.

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

©2018 TOTALPRESTIGE MAGAZINE - All rights reserved - CONTACT US - ADVERTISING TERMSTERMS OF SERVICE - PRIVACY POLICY

Log in with your credentials

Forgot your details?