European Stocks Lower After Trump Puts An End to New Bailout
The global tension triggered in the stock markets by the tweets of American President Donald Trump. The president ordered to suspend negotiations with the Democrats on a new economic stimulus package before the elections, which leads Europe’s main stock markets into negative territory this Wednesday morning, 7. The bad mood of investors, who are trying digest any unfolding of the decision, even though a good part did not foresee an agreement before the presidential race in the United States.
As European markets were already closed after Trump’s series of tweets, the reflection appears this morning. European index was down 0.07% at 365.62 points. “These tweets seem to have interrupted the risk reduction movement,” notes Dutchman Rabobank, in a report to clients.
The President of the United States said the Republicans had made a generous offer of $ 1.6 trillion and accused the House of Representatives President Nancy Pelosi, who asked for $ 2.4 trillion, not to be negotiating in good faith. “I instructed my representatives to stop negotiating until after the elections, when, immediately after I win, we will pass a major stimulus bill that focuses on American workers and small businesses,” said Trump.
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!
— Donald J. Trump (@realDonaldTrump) October 7, 2020
At the above time in Frankfurt, the DAX was down 0.10%. There, in addition to the “Trump factor”, the result of industrial production was unpleasant, with a 0.2% drop in August compared to July, in adjusted terms, as reported on Wednesday by Destatis, Germany’s official statistics agency. The indicator was expected to increase by 1.5%.
On the other western stock exchanges, London’s fell by 0.01%, and the CAC 40 index, in Paris, fell 0.04%, at 4,893.50 points. Milan’s FTSE MIB was down 0.02% to 19426.57 points. Meanwhile, Madrid’s Ibex 35 was down 0.49% to 6,902.50 points.
Only the PSI 20, from Lisbon, is an “outlier” this morning amid the bad mood of the markets, with an increase of 0.03%, to 4,183.95 points. Among the highlights of the Portuguese stock exchange, are the shares of EDP (SA: ENBR3), in the energy sector.
European Stocks Lower After Trump Puts An End to New Bailout - /10