paris (reuters) – european stock markets ended lower on friday, geopolitical tensions between north korea and the united states have weighed on the shares and that, despite the slight rebound on wall street following the disappointing figures for inflation.
the cac 40 in paris, was 1.06% (5.060,92 54.31%). the british lost well, footsie 1.08%, and the german dax was in perfect balance. the euro stoxx 50 index dropped 0.9%, the ftseurofirst stoxx 600 300 1.06% and 1.09%.
throughout the week, the cac 40 was 2.74% and it is 2.77%, its worst performance since the victory of donald trump in the american presidential elections.
donald trump was launched on friday a new warning to north korea that the united states, the weapons were ready for use, while china and russia are trying to intervene and stop the war of words between washington and pyongyang from escalating into armed conflict.
“for a long time, the market has not responded to what was happening on the korean peninsula, because we know from experience that north korea is hard, and it still may be the case. but the rhetoric has shifted to a higher level, and the market can not afford to take any chances, “says neil mellor for bny mellon currency in the strategy.
“this comes at a time when the market for correction measures, north korea is a trigger.” says shane oliver, head of investment at amp capital.
wall street has recently re record and the stoxx 600 has gained nearly 3% since the beginning of the year.
the cboe vix index volatility, nicknamed “the index of fear” of wall street, was higher in november and the euro stoxx 50 to a peak of about four months.
the dollar index, which was close to balance, reacted negatively to the publication of consumer prices in the united states, which has increased less than expected in july, reflecting a benign inflation, the federal reserve could make more cautious about raising interest rates again this year.
the dollar declines 0.2% against a basket of six other currencies and the euro makes reference to 0.2%. against the japanese yen, the refuge is traditional, the dollar is down for a short period of time, to a low of six weeks and now 109.05 (yen).
in the bond market, already surrounded, the performance of “treasuries” 10 temporarily increased to fall, to a low of about six weeks.
at the time of closing, the three major indices of wall street are on the upside, between 0.2% and 0.4%, respectively.
the values in europe, the resource base is sanctioned by the geopolitical tensions and the index it was 2.66%.
arcelormittal – 4.54%, the largest decline of sbf 120, glencore is 2.85%, rio tinto 3.15% and 3.05% anglo american.
carphone clearly fall to 0.7%, the largest decline in the stoxx 600 index of european, following the decision of exane bnp paribas lowered its recommendation for two levels, because of concerns about profitability and development.
oil prices fell to about 0.35%, while the international energy agency (iea) said that global oil demand will increase further, balancing a surplus market despite the lack of fulfilment of the commitments for the reduction of opec.
(laetitia. edited by wilfrid exbrayat)
copyright & copy;, thomson reuters
Translated by forexguides.info Team