From Europe to Asia: This One Issue Causes Stock Markets to Weaken Simultaneously
European stocks remained under pressure as trade tensions escalated. The Stoxx 600 Index fell 0.6% as market participants opted for restraint ahead of Donald Trump's appearance in Davos on Wednesday. Concerns also stemmed from surging global bond yields, while Citi even downgraded European stocks for the first time in over a year.
The pressure in Europe spread across sectors. Luxury goods stocks also slumped after Trump again raised the possibility of 200% tariffs on French wine and champagne—LVMH fell 1.7%. The industrial sector was the weakest, indicating investors are starting to avoid stocks sensitive to trade wars and financing costs.
In the US, futures also weakened: the S&P 500 fell 1.5% and the Nasdaq fell 1.7%. The market's next direction will likely be determined when Wall Street opens—whether the selloff deepens, or whether US traders perceive the Greenland issue as less of a concern than Europe. In Asia Pacific, sentiment was also negative: the Nikkei 225 was dragged down by rising Japanese government bond (JGB) yields, and the Kospi finally halted its strong rally. (az)
Source: Newsmaker.id
