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European markets started the week in slightest decline, with the tech sector pushing the stock indexes. Under Brexit, it was reported that Deutsche Bank has transferred about half of its euro clearing activities from London to Frankfurt. Shares of the German bank rose 2.75%. BMW has remained largely unchanged after the press reported today that the German company will be the first automaker to raise prices on cars built in the US and to be exported to China in the context of recent global trade tensions .

In the pre-opening, the European indices rehearsed in negative territory. The session will be marked by the release of several business results on both sides of the Atlantic. The technology sector will be more focused, not only by the observed behavior of companies in this area on Wall Street in the last session, but also by the fact that investors look forward to Apple's results. The business results agenda in Europe includes, among others, those of Credit Suisse, BP, Sanofi and Glencore. On the other hand, fears about the possible impact of Brexit on the car industry in Europe could influence this sector.

The session will today be marked by the release of quarterly results by some of the most important European companies. Arcelor Mittal, Air France-KLM, Infineon, Lloyds Bank, BNP Paribas, Volkswagen, Rio Tinto, among others. The figures revealed may influence the company’s stock movement as well as its activity sector. BNP Paribas figures have already been known: net profit rose 53% compared to the previous quarter to 2390 M€, but slightly down from last year. The results published yesterday in the US by Apple may condition the stocks of several European technology companies that are its suppliers.

Producers of raw materials and the automotive sector have been among the worst performers at a time when fears over trade tensions between the US and China are returning. Investors’ attention focused on the companies that presented their quarterly results as well as the Central Bank meeting.

The technology sector is expected to be in the spotlight after Apple's behavior in the New York session. Investors are waiting for the US employment report.

In the current context of deteriorating economic conditions in Turkey, the US market had slight losses. The technology sector was off the rule, with some gains.

In the current context of deteriorating economic conditions in Turkey, the US market had slight losses. The technology sector was off the rule, with some gains.

Yestrerday the Turkish President defended a retaliation against Washington for the worsening of the tariffs applied to imports of aluminum and steel coming from Turkey: Recep Tayyip Erdogan threatened to boycott the US electronic products, including the iPhone.

benchmarks fell led by the Nasdaq 100 Index. Crude oil rebounded after slipping below $65 a barrel following a report that American stockpiles rose the most since March 2017.

European markets have recouped some of the losses recorded in recent days, given some relief over the crisis in Turkey and the US-China trade war. Encouraging the most positive sentiment from investors came the news that China accepted the US invitation to visit the country later this month to negotiate bilateral trade issues, as well as the announcement yesterday of Qatar’s financial support it promised to invest 15 000 M.USD in Turkey.

European markets ended lower in the last day of the week, under pressure from the continuing fears and uncertainties associated with the situation in Turkey and the trade relations between the US and China. The banking sector, given the exposure of some institutions to Turkey, led the losses, while the technology sector was penalized by the news about the North-American company “Applied Materials”. In Paris, Air France-KLM devalued 3.54%, after confirmation of Benjamin Smith as new CEO. On the Eurozone, Eurostat reported that inflation in the region reached 2.10% in July, one tenth higher than in June and the highest since December 2012. In the European Union as a whole, inflation stood at 2.20 %, also a maximum since December 2012.

The US market was trading higher, with S&P and Nasdaq reaching new all-time highs. Investors’ decisions were still being influenced by Friday’s words from the President of the Fed and the agreement reached by the US and Mexico. During the weekend, a head of the Mexican delegation had advanced that the negotiations were going well and today an agreement between the two countries was announced. Now the talks will extend to the other NAFTA member, Canada.

The performance of the American indices is a favorable force to European markets given the high correlation between markets on both sides of the Atlantic. In fact, in the last two years, all the upward movements of European stocks were preceded by rallies on Wall Street.

European indices did not mark today a definite trend. The session was relatively quiet, with no big news, with investors taking advantage of the latest events (last week’s intervention by the President of the Fed and the recent agreement reached between the US and Mexico). Thus, the session was under low volatility and volume below the average observed in August.

European indices have today been the target of investors’ fears about emerging markets. The situation in Turkey is beginning to show signs of fragility. Yesterday, economic confidence hit the lows since March 2009 (in the midst of the global financial crisis), which led to a further decline in the Turkish Lira against the US Dollar. In the last 3 days, the Turkish currency depreciated by 6% against the US Dollar. Meanwhile in Argentina, Peso lost 8.15% even after President Macri announced that he was negotiating with the IMF on a loan of 50,000 M.USD, which should offset the country’s current inability to fund intentional markets. Since the beginning of the year, Argentino lost 45% of its value against the US Dollar. These two events, although uncorrelated, focused mainly on the securities most exposed to these two economies. In this sense, as Spanish banks BBVA and Santander, as well as Telefónica were particularly targeted by investor sales.

The delicate phase that crosses Argentina and Turkey has generated turbulence in the exchange markets and by reflex in the financial markets as a whole. This instability has led to an escape of foreign capital from these countries, a move that further pressures their respective currencies.

The escalation of trade tensions between the US and China influenced the begining of the week, although some European markets managed to close on positive ground in a session that was marked by the closing of the North American market.

The day was negative for most European markets, in a general context marked by fears about the situation in emerging markets and trade tensions between the US and China. Just like yesterday, automakers were among the worst performers, after over the weekend President Donald Trump said he was prepared to impose additional charges worth 200,000 M.USD on imports from China. Also on the sector weighed the deadlock that is marking the trade talks between the EU and the US, which are centered on the automotive industry.

The behavior of European stock exchanges continues to reflect investors' risk aversion. The day was marked by the start of talks between the US and Canada on a possible revision of the NAFTA agreement. In addition, some of the attention remains diverted to the news about customs tariffs on trade between the US and China. The banking sector was the only one to end up, as opposed to the technology that led the losses in sectoral terms, due to a series of reductions of recommendation. On the other hand, the German pharmaceutical Bayer depreciated, despite having reported a 3.90% increase in the results of the second quarter. In terms of economic indicators, in the Euro Zone, the PMI economic activity index stood at 54.50 in August, slightly above the expected 54.40. The same indicator, but for the services sector, stood at 54.40, as economists estimated. In Germany, the PMI for the services sector reached 55.0, compared to the expected 55.20.

Stock Markets – Closing Note – 6 Sep
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

The trend of European markets in today's session was negative. Pressure from emerging markets as well as fears about US-China customs tariffs remain the main reasons for investors' increased risk aversion. Leading the losses were the technology sector, reflecting the behavior of US counterparts, and producers of raw materials. Above all, at this moment investors are questioning the future of emerging markets, including Argentina. Yesterday, members of the Government said they were confident about the new agreement with the IMF. However, issues related to Brexit remain as background. The German Government has stated that it is prepared for any scenario, including that of a "no-deal". The London Stock Exchange ended today with a loss of 0.91%.
The US market was trading lower, with tech companies' performance negatively impacting the Nasdaq. Highlighting the losses of Amazon and Apple, as well as chip makers, such as Micron Technology. In terms of economic indicators, the ADP employment report showed that 163 000 jobs were created during August, an increase below the expected 200 000. Still on the labor market, the number of weekly applications for unemployment benefits reached 203 000, lower than the estimated 213 000. On the other hand, factory orders decreased 0.80% in July, after two months of increases and against an expected fall of 0.60%. On the other hand, orders for durable goods decreased 1.70% in July, in line with expectations. The ISM index for the services sector stood at 58.5 in August, compared to the previous 55.7 and the forecast 56.8.