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People walk in the lobby of the London Stock Exchange in London, UK, on August 25, 2015. REUTERS / Suzanne Plunkett / Photo of the file
October 29, 2018
By Helen Reid
LONDON (Reuters) – Concern over the slowdown in the Chinese economy has tarnished US equity futures and kept up the pressure on global equities on Monday.
The euro however fell to a trough in the session after a major party source told German Chancellor Angela Merkel that she would not run for the party presidency after sudden losses of his Christian Democrats in the regional elections in Hesse.
German DAX <.GDAXI> was up 0.7% at 09:29 GMT while the main index of equities in the euro area <.STOXX50E> increased by 0.5%, stimulated by a weaker euro.
FTSE MIB in Italy <.FTMIB> with a drop of 1.5% after the sharp drop in Italian bond yields after Standard & Poor's decision to leave Italy's sovereign rating unchanged, which eased the rating.
It also boosted the actions of Italian banks <.FTIT8300> up 2.7%.
Despite gains on Monday, investors continued to focus on a farm risk recovery.
"The only way to summarize the fundamental sentiment among European investors I've met is something like" dark enough, "wrote Erik Nielsen, chief group economist at UniCredit, in a note to customers.
The MSCI World Equity Index <.MIWD00000PUS>, followed by equities in 47 countries, gained 0.1%. The index is down 9.3% so far this month and has lost $ 6.7 trillion in market capitalization since its January high.
Overnight losses in Asia were largely attributable to the Chinese first-order index, which plummeted by more than 3.3%.
Chinese data highlighted the concern of a slowdown in the economy, as profit growth in its industrial enterprises slowed for the fifth consecutive month in September due to lower sales in the United States. raw materials and manufactured products.
The S & P 500 and Dow Jones Industrial futures contracts fell 0.2 to 0.3% after the numbers, offsetting gains of 0.4% previously. <1YMc1>
Global financial markets have been affected by a series of negative factors resulting from the intensification of the relationship between China and the United States. trade conflict with the tensions in Europe over the Italian budget and the tightening of monetary policy.
Many indices are already in official correction territory, while corporate profits and global growth are of growing concern.
Analysts have downgraded their European earnings estimates to the fastest pace since February 2016, and the weak results of internet giants, Amazon and Alphabet, hurt US stocks late last week.
Revisions to MSCI Europe results: https://tmsnrt.rs/2CMGWjW
BOLSONARO WINS EMERGING STOCKS BOOST
Emerging market equities <.MSCIEF> gained 0.1% on their first rise in five sessions after right-wing candidate Jair Bolsonaro won the second round of the Brazilian presidential election.
European shares exposed in Brazil climbed as investors looked forward to the victory. Blackrock Latin American Investment Trust
"Our initial badessment for the Bolsonaro administration is that it will take a pro-business stance focused on improving the country's competitiveness," said UBS badysts.
In currencies, the dollar index <.DXY> increased 0.2 percent to 96.553 after gaining 0.7 percent last week.
L & # 39; euro
Finance Minister Philip Hammond is likely to ask his divided Conservative party to join the government's push for a Brexit deal or to jeopardize a long-awaited easing of austerity.
In the commodities sector, oil also reversed its initial gains to fall back on growing concerns about Chinese growth. American brut
Spot price of gold
(Report by Helen Reid, edited by Raissa Kasolowsky)
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