European stock markets opened lower. The biggest losers are indices from Poland, Austria, and Germany, falling by 0.92%, 0.73%, and 0.70% respectively. The Stoxx 600 index is down 0.45%, while the VSTOXX volatility index gains nearly 7.00%.
Sentiment in the global economy did not improve following yesterday’s announcement of a preliminary agreement between the U.S. and China. The outcome of the negotiations was not optimistic enough. The high tariffs imposed by Washington on China are expected to remain in place, and negotiations with key U.S. trading partners will likely continue beyond the original July 9 deadline.
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Create account Try a demo Download mobile app Download mobile appAdditionally, Trump said that the extended negotiation period would be granted only to those partners who show a willingness to cooperate. This may concern European markets, as the EU has repeatedly been cited by the White House as an example of poor cooperation. Worry was further fueled by the latest macroeconomic data from the UK, which clearly showed the impact of the trade war. UK GDP contracted by 0.3% in April, and industrial production fell. This was the result of turmoil in the global trade market and restrictions imposed by the U.S.
DAX
The German index extends its correction by 0.70% to 23,740 points. From a technical analysis perspective, the nearest support level is the zone between 23,000–23,400 points. These levels are currently about 1.70% below the current valuation.
Source: xStation 5
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