Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets ended lower in the last day of the week, under pressure from the continuing fears and uncertainties associated with the situation in Turkey and the trade relations between the US and China. The banking sector, given the exposure of some institutions to Turkey, led the losses, while the technology sector was penalized by the news about the North-American company “Applied Materials”. In Paris, Air France-KLM devalued 3.54%, after confirmation of Benjamin Smith as new CEO. On the Eurozone, Eurostat reported that inflation in the region reached 2.10% in July, one tenth higher than in June and the highest since December 2012. In the European Union as a whole, inflation stood at 2.20 %, also a maximum since December 2012.
Wall Street returned to negative territory after gains yesterday and despite the news on resuming US-China talks scheduled for next week. At stake was a further fall of the Turkish Lira against the Dollar after the Secretary of the Treasury Steven Mnuchin said that Donald Trump has confirmed in a tweet that he will continue to issue economic sanctions on Turkey until the US pastor is released. In addition, the semiconductor industry was pushing stock indexes. Applied Materials has projected results for the current quarter lower than analysts’ expectations. Shares of the world’s largest supplier of chip equipment lost more than 6 percent. Nvidia also reported quarterly revenue short of analysts’ estimates and said demand for crypto products was down sharply, with sales forecast for the current quarter below average estimates of market consensus. As a result, the titles of some of the top technology companies, such as Facebook, Amazon, Netflix and Alphabet, traded on a downward trajectory. Tesla declined about 8% after confirmation that the company faces an investigation by the US stock market regulator following the tweet sent by CEO Elon Musk about his intention for taking the company private. In terms of economic indicators, the consumer confidence indicator, measured by the University of Michigan, fell in August to 95.3, lower than the 97.9 in July and the estimated 98.5.