After a weak start, major European stock markets closed deep on Friday.
On Friday, US President Donald Trump’s announcement that Washington is imposing a 10 percent surcharge on Chinese imports worth about $ 300 billion as of September 1 is causing huge losses on the stock markets. And China did not delay in anticipating countermeasures.
Most Asian markets closed at a loss of one and a half percent on Friday. When the European markets closed, the US stock exchanges also lost one and a half percent.
Exchange rate indices rarely fell on Friday in Europe. The pan-European FTSE EuroFirst 300 and Stoxx Europe 600 indices were down 2.41 and 2.33 percent at the end of the European trading period, while the Euro area EuroStoxx50 index was down 3.02 percent.
In London, according to unofficial closing data, the FTSE-100 index closed at 2.30 percent on Friday, while the Frankfurt DAX index fell by 2.88 percent and the CAC-40 in Paris fell by 3.34 percent. The stock index fell 1.41 percent in Madrid and 2.11 percent in Milan on Friday.
The sectors most exposed to the deepening of trade controversies, the raw materials and automotive industries, suffered the most losses, with the sector indicators weakening by around four percent.
Valeo and Faurecia automotive supplier companies both lost more than seven percent. The Austrian Andritz factory construction company lost nearly seven percent.
In addition to trading concerns, corporate earnings reports moved the prices on Friday. Royal Bank of Scotland’s stock has risen above six per cent thanks to its extraordinary quarterly earnings. The French Credit Agricole’s share weakened by five percent due to a 15 percent decline in its earnings.
After a sharp fall the previous day, oil prices rose upward at the end of the European trading period at $ 62.23 a barrel in global trade, up 2.86 percent, while the WTI rose 2.84 percent to $ 55.48. Brent prices fell seven percent on Thursday, three-year highs, WTI eight-percent, four-year high after announcing US president’s announcement to increase Chinese import tariffs.
The euro is up 0.18 percent at $ 1,1103, while gold is up 1.58 percent per ounce at $ 1,455.05.