European stocks are reeling out after the inauguration of President-elect Donald Trump. The European stocks are close to having a very good year starter rally, but after Trump’s speech, which was enveloped with a protectionist tone, halted the stocks to prosper. On the other hand, the euro overtakes dollar and widens its lead ahead of its close competitor.
The most famous in the European stocks index, the Stoxx Europe 600 has staggered a total of 0.6 percent at 360.33 the index closed by declining a total of 0.1 percent last Friday as a pre-imminent ahead of Trump’s inauguration speech in Washington DC. Other European stocks such as the pan-European benchmark took a blow last Friday, closing with a 0.9 percent decline. Just before last week ended, the market is bracing for a 15 percent rally from the European stock market.
On a year-to-date view, the European stock market index is down a total of 1.4 percent. While European stock market investors are looking closely at a 3100 to 3300 area looming around the Euro Stoxx 50 index. While ECB’s President Mario Draghi, a firm supporter of the stock market, says a strong dollar can increasingly pressure euro which can be desirable to the European stocks. Mr. Draghi said in an interview that “The recovery is resilient.”
Major European Indexes Down
Other major European indexes such as Germany’s DAX 30 fell a total of 0.9 percent at 11,531.46 and France’s CAC 40 also declining a total of 0.8 percent at 4,809.60, According to Rivkin Securities’ global investment analyst James Woods, “Trump’s first 100 days will now be the key focus, and while he may be given a short honeymoon period by the market, patience will run out quickly if there is little progress towards making good on his promises of tax cuts, stimulus (sic) and deregulation,”.
Basket of European stocks including Paddy Power Betfair PLC’s shares were down 1.3 percent, Essentra PLC’s shares were also plummeting a total of 5 percent after components supplier said adjusted operating profit for 2016, U.K.s FTSE 100 also fell 0.9 percent at 7,137.79, and Spain’s IBEX 35 the last to go down with a total of 0.8 percent loss at 9.302.20.
Euro Winning Against Dollar
While a creel of European stocks is wailing after Trump’s inauguration, Euro, on the other hand, is racing way past its arch-rival the dollar. The euro is closing to more than a one-month high in early Monday trade, it is at a firm 0.1 growth at $1.07610 after nearly hitting $1.07210, its highest ever since last year’s December 8.
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