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A sale in global actions was held on Tuesday following steep falls on Wall Street fueled by investors concerns about the health of the American economy.
The term markets highlighted a small recovery in the United States, contracts following the S&P 500 and the NASDAQ 100 up 0.4% and 0.5% respectively.
In Europe, the Stoxx Europe 600 fell 0.1% in the morning trade, while Germany Dax added 0.6%.
The composite nasdaq fell 4% Monday – its worst day in two and a half years – while the S&P 500 index fell 2.7% compared to fears of the economic impact of Trump’s World War.
“American data still shows a decent economy, but investors are frightened by an erratic political messaging that undermines consumption and investment,” said Guy Miller, market chief strategist at the insurer Zurich. But “the fears of American recession seem exaggerated,” he added.
European infrastructure and defense actions – which gathered after Germany announced a historic agreement last week to finance investments in the military and infrastructure – were among the winners on Tuesday.
The euro increased by 0.7% to $ 1.091, recovering almost all of its losses from the US elections, while investors continued to bet on a better growth image for Europe at the back of the German spending plan for “everything it takes” announced last week.
“Yesterday’s movements suggest a lot of pain on the street,” said Mohit Kumar, analyst at Jefferies. But the reaction of the market was exaggerated with “a hard landing or a recession” and not on cards in the United States, he added.
In Europe, during this time, investors will continue to “revise their growth forecasts and [continue] Invest in defense, “he said.
The largest defense group in Germany, Rheinmetall, increased by 2.6%, and Leonardo Italian was 1.9%higher, both having increased since the start of the year in the hopes of defense spending. Infrastructure companies have also added to their earnings, the Schneider Electric de France up almost 3%.
Asian actions, which opened heavily below Tuesday after the American sale, recovered land. The Nikkei 225 index in Japan Topix and exporter in Japan finished 1.1 and 0.6% respectively respectively. The CSI 300 in China increased by 0.3%.
The quarter -work followed large movements in Wall Street where investors were upset by the rhetoric of senior officials of the US administration on the falls of the equity market. Trump said there would be a “transition period” as the economy adapted to a world trade war.
Technology and industrial companies have directed falls in Asia. Taiwan flea manufacturer, TSMC, fell 2.7%, Samsung Heavy Industries in Korea fell 2.1%and Tokyo Electron ended the day down 0.5%.
“It will be a global volatile market this year, with Trump and [presidential adviser Elon Musk’s] Daily News made the headlines, “said Thomas Fang, UBS China world market manager.
Other analysts have noted that American technological actions have gathered in the past year, which has led some investors to make profits.
“The whole [US] The technology sector has increased so much since last April, even with the correction now, it has gathered a lot, “said Wee Khoon Chong, Senior market strategist at BNY.
“People fear that it will be a merger, but I don’t think so,” he added.
“When you have a new best option, people adapt, assessments adjust,” said Chong.
US treasury bills were also stable, the 10 -year yield fell 0.01 percentage points to 4.21%.
The US dollar, which has been led lower by concerns about the health of the world’s largest economy, fell 0.6% against a basket of six business partners and has been down 4.8% since the start of the year.
Oil prices have increased, with Brent Futures – the international index – up 0.5% to $ 69.64 per barrel, after a fall on Monday, in growing uncertainty on global demand.
Gold increased by 0.7% to $ 2,909 per ounce Troy.
