Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
The delicate situation of some emerging markets has once again put pressure on the markets of the Old Continent. The delicate phase that crosses Argentina and Turkey has generated turbulence in the exchange markets and by reflex in the financial markets as a whole. This instability has led to an escape of foreign capital from these countries, a move that further pressures their respective currencies. To counter this trend, the Central Bank of Argentina raised interest rates to 60%, thus trying to attract a very high interest rate to some of that foreign capital. However, high interest rates aggravate the debt burden of private individuals and domestic firms and discourage investment. In this context, a strong risk aversion was generated in Europe, which penalized the stocks of companies with greater exposure to emerging markets.
The vicissitudes of European and emerging markets were not causing great fears on Wall Street. Even the news published by Bloomberg on thursday appeared to have a temporary impact on American markets. This information agency mentioned that the Trump Administration would be studying the implementation of additional tariffs on 200 000 M.USD of imports from China. Bloomberg also refferred that the President had not yet made a final decision on the matter.