European stocks close in on worst year since 2008
With only 11 days to go European stocks are staring down the barrel of one of the worst performances in a decade, with the recent Santa rally turning into a Christmas rout.
European stocks are down again on Friday following a brutal few days in the build up to Christmas in what is the shaping up to be the worst year for equities in the region since the 2008.
The Stoxx Europe 600 has fallen as much as 0.8% on Friday morning, resulting in an annual loss for the index of around 14%.
Meanwhile, the Euro Stoxx 50 and the Euro Index are both down 0.12 and 0.26 respectively as of 1:45pm GMT, with the former alarmingly close to entering a bear market as even European blue-chip companies can’t escape the negative market sentiment ahead of the Christmas holidays.
Trade tensions and Brexit uncertainty loom large
Yet another day in the red for European equities comes as investors grow increasingly skittish in the face of numerous macroeconomic headwinds.
Trade tensions between the US and China show signs of flaring up again after American officials opted to charge Chinese hackers of espionage.
In Europe, the ever looming and seemingly never-ending Brexit debacle continues to offer businesses little in the way of clarity, applying additional pressure on European equities amid a global economic slowdown.
What’s more, the prospect of the UK bailing out of the bloc without a deal is looking more likely than ever, with the UK prime minister Theresa May reportedly weighing up whether to allow the British people a second referendum as she struggles to garner support for her Brexit deal.
Even good news from China can’t seem to stem the tide of negative sentiment in the financial markets, with its government announcing that it will increase tax cuts and ease monetary policy in a move that will increase demand for European exports.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
See an opportunity to trade?
Go long or short on more than 13,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.