Global Stocks Falter On Spain Attacks
Faizan Hashmi Published August 18, 2017 | 07:15 PM
Stocks markets around the world slid Friday as traders sought haven investments such as the yen and gold following an attack in Barcelona that sent airline share prices tumbling
LONDON, (UrduPoint / Pakistan Point News - 18th Aug, 2017 ) - Stocks markets around the world slid Friday as traders sought haven investments such as the Yen and gold following an attack in Barcelona that sent airline share prices tumbling.
Thursday's deadly van attack in the Catalan capital compounded investors' concerns over economic policy paralysis in Washington. "The recent shift towards haven markets continues," said Joshua Mahony, market analyst at IG trading group.
David Madden, analyst at CMC Markets UK, noted that "the combination of political uncertainty in the US and security concerns in Europe are weighing on investor sentiment". In afternoon trading, the main stock indices in London, Paris and Madrid were each down 1.0 percent compared with Thursday's closing levels.
Gold, seen as a store of value in uncertain times, jumped back above $1,300 per ounze for the first time in nine months, while the yen strengthened against the Dollar and struck a near-seven week high versus the euro.
"While the week started well, we are now seeing widespread selling for global stocks, with traders instead choosing to shift their focus towards the likes of gold and the yen," added Mahony. Airline shares suffered with Air France-KLM shedding 1.4 percent and IAG, which owns British Airways and Spanish carrier Iberia, down 1.5 percent.
"As we've seen over the last couple of years in Europe, these kinds of atrocities affect tourism and will hit airline earnings," Neil Wilson, senior market analyst at ETX Capital said in a client note.
"Investors are concerned that demand will fall over the rest of the year, which was already looking like it would be a tough patch for the industry.
" Earlier in Asian trading, Tokyo led the fall in regional stocks, slumping to its lowest close since early May, with the Nikkei also struggling in the face of the resurgent yen.
Wall Street stocks opened down on Friday, with the Dow Jones Industrial Average dipping 0.1 percent and the S&P 500 Index slipping less than a tenth of a percentage point. On Thursday, the S&P 500 Index tumbled by its second-biggest drop of the year, with financial and technology shares among the worst performers.
US stocks had been hit by rumours that Donald Trump's economic advisor Gary Cohn would resign owing to unhappiness over the president's response to a violent rally by racist groups in Charlottesville, although a White House source denied the claims.
"The attack in Spain and the rising doubt that Trump will be able to push through with his economic policies are among a series of unfortunate events that's creating uncertainty for investors to pullback and capitalise on their (recent) gains," said Jonathan Ravelas, chief market strategist at BDO Unibank.
Sentiment in the US was dented also after the White House said Trump had abandoned plans to form an advisory council on infrastructure, worsening business fears he will struggle to enact pledges to boost the economy. Stock markets had been clawing back losses from last week's slump . over fears of military clashes between North Korea and the US before the latest downturn hit.
Related Topics
Recent Stories
Saka and Odegaard start for Arsenal, Guerreiro in Bayern midfield
Qatar PM says re-evaluating Israel-Hamas mediation role
Govt spokesperson terms allegations of PTI's Marwat against Saudi Arabia 'heinou ..
Minister appreciate UAE’s support for Pakistan economic challenges
Manchester City v Real Madrid Champions League starting line-ups
MIGA's support Pakistan in attracting foreign investments: Federal Minister for ..
Walker returns to captain Man City for Real Madrid clash
Action taken against price list violations in Khanewal district
DC chairs review meeting of DEG
Turkey accuses Israel's Netanyahu of using war 'to stay in power'
Pakistan ranked 5th most vulnerable country to climate change. Tirmizi
Nadal comeback ends in Barcelona Open second round
More Stories From Business
-
Minister appreciate UAE’s support for Pakistan economic challenges
9 hours ago -
MIGA's support Pakistan in attracting foreign investments: Federal Minister for Finance, Muhammad Au ..
9 hours ago -
International financial partners to invest $1.8 bln in KP: Advisor
10 hours ago -
Uzbek envoy invites FPCCI leadership to attend Tashkent Int'l Investment forum
11 hours ago -
Women development imperative for sustainable economic prosperity: Lansana Wonneh
11 hours ago -
Finance Minister, highlights geo-economic fragmentation, its impact on Pakistan
11 hours ago
-
High Tobacco tax prevails over propaganda, reduces cigarette consumption
12 hours ago -
SECP grants registration to first digital insurer
12 hours ago -
European stock markets rebound after heavy losses
12 hours ago -
SECP files complaint against two individuals on violation of trading
12 hours ago -
Govt prioritize to peruse economic reform agenda for sustainable economic development: Minister
12 hours ago -
IMF says global debt levels face 'Great Election Year' risk
14 hours ago