Share Prices & Company Research

Market News

29 May 2020 | 17:55

Europe close: Geopolitical tensions dent advance in stocks

(Sharecast News) - Stocks were still trading on their back foot come midday, but had come off their worst levels, as financial markets girded themselves for a White House press conference scheduled for later in the evening. The US President was expected to outline Washington's response to China's decision to clampdown on freedoms in Hong Kong.

"Today's press conference could well up the ante further, if President Trump signs off on that bill as well as implementing further measures that might hint that the US is keen to send the Chinese a message," said CMC Markets UK's chief market analyst, Michael Hewson.

By the end of trading, the benchmark Stoxx 600 was down 1.44% to 350.36, alongside a 1.65% drop for the German Dax to 11,586.85 while the FTSE Mibtel was off by 0.84% to 18,197.56.

In parallel, euro/dollar was adding 0.17% to 1.1096 and the yield on the benchmark 10-year German bund had drifted three basis points lower to -0.45%.

Front month Brent crude oil was also under slight selling pressure, giving back 1.28% to $34.84 a barrel on ICE.

In economic news, all eyes were on the latest euro area consumer price figures, with Eurostat reporting a dip in the year-on-year rate of headline inflation from 0.3% for April to 0.1% in May, as expected.

That was only marginally better than a deflationary reading; however, core CPI held up better than expected and was unchanged from April's pace of 0.9% on an annual basis.

On a more positive note, the rate of growth in euro area money supply picked up from a 7.5% pace for March to 8.3% in April (consensus: 8.2%).

And in Germany, the ministry of finance reported a much better than feared 5.3% on the month decline in retail sales for April (consensus: -12%), although in France data on household consumption revealed a 20.2% fall (consensus: -14.7%).

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 10th July 2020
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.