Germany equities were lower at the close on Friday, as losses in the Construction, Industrials and Transportation & Logistics sectors propelled shares lower. At the close in Frankfurt, the DAX lost 1.04%, while the MDAX index declined 1.04%, and the TecDAX index declined 0.25%. Declining stocks outnumbered rising ones by 450 to 234 and 96 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 7.62% to 16.76. EURO the shared currency used across all countries in Europe is fundamentally weak in global market. While today’s trading session shows EURO is moving positive, the same can be viewed as result of lack of pull from other side of Atlantic. European markets are expected to face bearish market sentiment as credit rating Fitch revised lower its outlook on Italy to negative from stable over the weekend.
Global Equities Move Down on Trade War Fears
Asian stocks dropped for the third consecutive session on Monday, hit by worries over further escalation of the U.S-China trade war and unstable emerging market currencies. Trump said last week he was ready to implement the new tariffs as soon as a public comment period on the plan ends on Thursday, which would be a major escalation given the United States has already applied tariffs on $50 billion of exports from China. It looks almost certain that U.S. President Donald Trump will impose 25% tariffs on $200 billion worth of imports from China. Key Asian markets such as Singapore, Hong Kong, Shanghai and Tokyo closed in red for the day providing dovish influence to European counter part while Wall Street is closed for the day on Labour Day holiday.
Germany’s DAX futures which traded in international market moved bearish ahead of European market hours indicating bearish consumer sentiment surrounding German Equities. German DAX opened bearish for the day and has since declined steadily. As of writing this article, the index is trading at 12339.33 down 0.32% on the day as 16 of 30 stocks that make up DAX trade in red and the index is expected to see continued downtrend movement across today’s market hours as other key European equities are also trading in red so far.