European Stocks Decline after President Trump’s Statements

European stocks fell on Thursday subsequent to US President Donald Trump’s statement that the dollar is too strong and that he would prefer the Federal Reserve to keep interest rates low.

Euro Stoxx 50 declined by 0.7 percent to 3,445. France’s CAC 40 dropped 0.6 percent to 5,067 while Germany’s DAX 30 went down 0.4 percent to 12,102 on Thursday, 13:29 GMT.


Investors remain careful after President Trump’s comment on Wednesday of the US-Russia relations “may be at an all-time low” at the same time commending Secretary of State Rex Tillerson for his effort on addressing the issues in Moscow. He also announced a new-found faith in the North Atlantic Treaty Organization (NATO) saying the coalition “no longer obsolete”.

The US President on Tuesday has also signed off the country of Montenegro for its impending accession into NATO so as to help pave way for the military’s coalition in the Balkans. Montenegro will be the 29th member of the NATO alliance at the meeting in Brussels next month.

Markets were also on edge after the US President’s statement that the greenback is getting too strong and he would like for the Fed to carry on with low interest rates.

Financial stocks also dropped on Thursday seeing that the BNP Paribas (BNPP) was down by 1.8 percent to 58.01 while Societe Generale (SOGN) declined 3 percent to 43.30. Germany’s Deutsche Bank also lost 1.5 percent to 15.055.

Subsidiary lenders also experienced losses such as Italy’s Intesa Sanpaolo (ISP) sank by 1.7 percent to 2.434 and UniCredit (CRDI) fell 2.2 percent to 12.92. Spanish banks BBVA was pulled down by 1.7 percent to 6.825 and Banco Santander (SAN) was behind by 2 percent to 5.452.

Travel and leisure stocks tightened as well as the largest airline in Europe, Lufthansa plummeted 4.6 percent to 14.905. Infinite Miles, a shareholder of the airline placed a 2.5 percent stake at 15.25 euros ($16.26) apiece for sale.

Meanwhile in the US, equity markets are having a short open. The Dow Jones Industrial Average (DJI) futures dipped 0.2 percent to 20, 535, S&P 500 futures a 0.1 percent cut to 2,336 and Nasdaq lost 0.04 percent to 5,370.

The dollar spot index was also down by 0.3 percent to 100.410 on Thursday which marks the dollar’s biggest weekly fall since prior to the US presidential election in November.

Asia MSCI’s index of Asia-Pacific shares was down 0.04 percent to 146.78 and the Nikkei 225 (N225) dropped 0.6 percent to 18,426 on Thursday, 06:00 GMT.

Shanghai Composite (SSEC) was up 0.7 percent to 3,276, Hong Kong’s Han Seng (HSI) index was reduced 0.2 percent to 24,261. Seoul’s Kospi (KS11) index boosted 0.9 percent to 2,148 while India’s BSE Sensex 30 (BSESN) retreated 0.6 percent to 29,461.

On the other hand, prices for commodities are rising as gold futures has a 0.8 percent high to 1,289, silver also went up 1.4 percent to 18.55 and copper futures a 0.6 percent increase to 2.561.

Crude oil WTI futures was also up 0.2 percent to 53.24 per barrel and Brent oil as well got a 0.2 high to 55.97.

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