European shares and Great Britain Pound trending points
- Amid a stockpile of unnerving catalysts, the European shares started their first trading day of 2019, deep behind the red line
- Great Britain Pound plunged amid Brexit chaos, as PM May’s call for backing the Brexit deal on New Year’s Video message appeared to have little impact on UK lawmakers
- Signs of declined global growth started to show off, as China, Malaysia, Singapore and South Korea, all revealed disappointing economic data on Wednesday, which plausibly played behind this early tottering of European shares alongside, Euro and GBP.
European shares tottered on the first trading day of 2019 amid intense political instability
The risk of a global-scale economic contraction had been lurking in the shadows, while its paws had already scratched the first day of 2019, including both Asian and European shares. The US stocks had also started the day with a bearish tone, amid fears of global growth, trade wards, political instability and rising US interest rates.
The European shares started the day on a phase, when the Asian shares had been rammed heavily by distressful economic data from China. While market sentiment had already been battered with an exacerbation of economic contraction, the Euro zone manufacturing activity failed to expand at the end of 2018.
While this report was being prepared, 2ndJanuary, 2019, Wednesday, GMT. 16.00, the Eurozone stocks STOXX, was down by 1.6 percent and there had been sharp falls all over Europe including France and Spain. Paris CAC40 shredded off 2.2 percent and Madrid ESP35 was down by 1.7 percent during the preparation of the report.
While the European oil & gas sector was drained 1.6 percent, the Britain’s FTSE had managed to close the day slightly in the green. However, Great Britain Pound failed to continue the pre-holiday momentum.
GBP/USD daily chart
Followed by the worst year for the global equities in a decade, investors have actually been embracing themselves for more market volatility ahead and in Europe, market might have been waiting for further catastrophe, as there had not been any incomplex directions for the investors.
Yesterday, during the New Year’s Message, the UK PM May, urged UK policymakers to back her Brexit plot and let Britain breathe. Despite repeated call from UK PM, things seemed to be falling apart and GBP might plunge further in to 1.2550s territory.
Meanwhile, Italian stocks may falter further, amid budget crisis, as oppositions had been claiming that the budget was largely interfered by EU and further budget fabrication might come along in upcoming France’s budget.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]