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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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European Equity Market Handover from bad to ugly

Article By: ,  Financial Analyst
May 13, 2019 10:50 AM


Stock market snapshot as of [13/5/2019 2:54 PM]

  • China retaliated with its own trade war salvo on Monday, applying tariffs on $60bn in U.S. goods to 25%, whilst serving 20% and 10% duties on a smaller categories of goods and leaving taxes on 595 items at 5%
  • The impact on markets was predictable and immediate: European stocks and U.S. stock index futures plumbed new session lows; perceived ‘safe havens’ like the yen, U.S. Treasury prices and gold extended gains
  • The tariff rises take place on 1st June, with Beijing allowing time for further planned talks—which aren’t yet scheduled—to potentially reach a breakthrough
  • The chances don’t look good. The relatively constructive—if combative—tone of Washington and Beijing in recent days has turned ugly. China will be “hurt very badly” if it doesn’t do a deal, said U.S. President Donald Trump. China went from still “cautiously optimistic” on Friday, to quote Vice Premier Liu He, to adamant that it will “never surrender to external pressure”
  • Amid existing tensions over U.S. sanctions on Iran, Saudi Arabia’s claim that two of its tankers were “sabotaged” brought a sharply bullish reaction from oil traders. Details of what exactly happened remain unclear, but the Brent benchmark last rose 2.7%

Corporate News

  • The oil sector is the only defined equity segment to gain. STOXX’s Oil & Gas index was up 0.3% just now
  • A brokerage upgrade of Denmark’s Aker BP that buoys the stock 3%, is the oil industry’s biggest riser

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