European Equities Tumble as Oil Extends Losses

September 25, 2019
European Equities Tumble as Oil Extends Losses

By Investors Hub

European stocks have tumbled on Wednesday as worries about U.S. and U.K. political turmoil as well as renewed concerns about slowing global growth has sapped investors’ appetite for risk.

U.S. President Donald Trump’s criticism of China’s trade practices at the United National General Assembly on Tuesday also fueled pessimism about the prospect of a trade truce between the world’s two largest economies.

While the U.K.?s FTSE 100 Index has fallen by 0.5 percent, the German DAX Index is down by 1 percent and the French CAC 40 Index is down by 1.3 percent.

The British pound fell against its counterparts after rallying Tuesday following
Britain’s Supreme Court ruling that Prime Minister Boris Johnson’s suspension of parliament was “unlawful”.

BP Plc and Tullow Oil have come under pressure as oil prices extend losses for the second day running on worries about falling fuel demand.

Miners Anglo American, Antofagasta and Glencore have also dropped as hopes of a trade deal between the U.S. and China faded and the Asian Development Bank downgraded its growth forecasts for the region.

ThyssenKrupp shares have also fallen. The struggling German industrial conglomerate announced that it would start negotiations soon to end the contract of current CEO Guido Kerkhoff and propose current Supervisory Board Chairwoman Martina Merz as interim CEO for no longer than a year.

On the other hand, retailer J Sainsbury has advanced after it unveiled plans to slash costs in coming years. Aerospace and defense company Babcock International Group has also jumped after backing its full-year view.

In economic news, French consumer confidence strengthened to the highest level in 20 months in September, survey data from the statistical office Insee showed.

The consumer sentiment index rose to 104 in September from a revised 103 in August, reaching the highest level since January 2018. The expected reading was 103.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Leave a Reply

Political Uncertainty Weigh on Wall Street
Previous Story

Political Uncertainty Weigh on Wall Street

Asian Shares Fall as Trump Battles Impeachment Threat
Next Story

Asian Shares Fall as Trump Battles Impeachment Threat

Latest from Economy

Don't Miss