What’s Keeping European Stock Markets on Edge?
Arslan Butt • 1 min read
The spillover effect from the US-China trade war has started to impact European stock markets. On Thursday, FTSE closed 1.4% lower while DAX and CAC ended the day 1.8% lower. The automobile sector was the main driver of this fall, closing almost 3% lower over heightened uncertainty caused by the trade war.
In addition, the US ban on Huawei continues to impact the tech sector in global stock markets. On Thursday, Panasonic and Arm announced that they are disengaging from Huawei following the US government’s order to blacklist the company. There are also reports that more tech companies will follow suit and stop supplying to Huawei.
Brexit uncertainties are also keeping European stock markets on edge as PM May looks set to resign. This could create more chaos in the Brexit process as markets expect a new PM to renegotiate a Brexit deal with the EU, possibly leading to further delays.