European stock market hesitates with Sino-American tensions and the health crisis

  •   28/07/2020 - 11h28
  •   DEHOUI Lionel

At the beginning of this new week, the main stock exchanges of the European continent are in a scattered order in the first trades. They are visibly suffering the weight of the fall in values linked to transport. A situation whose main factor remains the worries surrounding the progression of covid-19 as well as the tensions between Beijing and Washington. These fears have been rekindled by London's very unexpected decision to introduce a fourteen for certain journeys.

European stock market hesitates with Sino-American tensions and the health crisis

The different indices

According to the British authorities, all travellers coming from Spain and landing on their perimeter will be subject to the fourteen measure. As a result, the doubts of the European transport and tourism sector are more keenly felt. This can be seen with the London FTSE down 0.19%. The CAC 40 lost 0.1% to 4,951.3 points on the Paris Stock Exchange around 8:20 GMT. But the Dax surprises everyone.

In Frankfurt, Dax gained 0.46% thanks to the remarkable rise of SAP and a good Ifo index. The EuroStoxx 50 follows, gaining 0.09%. However, the Stoxx 600 lost 0.1% and the FTSEurofirst 300 lost 0.03%. Let us note that most of the European markets continue in the fall this Monday, July 27, 2020 after the famous decision of London. The United Kingdom also advised against Spain to its travellers because of the coronavirus.

Note: These measures do not apply to destinations less affected by the pandemic such as the Canary Islands and the Balearic Islands. If the health situation worsens, measures against France and Germany could be applied, according to the British Secretary of State. On the other hand, the Dow Jones, the Nasdaq Composite and the S&P-500 have ceded 0.68%, 0.94% and 0.62% respectively to Wall Street. Tensions between China and the United States pushed the Nikkei down 0.16% in Tokyo.


Diplomatic tensions and the state of Berlin

Apart from the situation in Great Britain, Sino-American tensions are also a cause for concern. On Monday, China announced that it has taken control of the premises of the American consulate located in Chengdu, in the south-west of the country. It should be recalled that the Chinese authorities had given the order to close this diplomatic representation in response to the closure of its consulate in Houston, Texas. These closures took place over the past week.

On the other hand, it is not all fears and bad news this Monday. There is also good news such as: the improvement in the morale of German entrepreneurs during the month of July.


Values in Europe

Transport giants such as Air France-KLM, Lufthansa, IAG and EasyJet made losses ranging from 4.02% to 10.36%. The TUI group fell sharply by 13.10%, the lowest of the Stoxx 600 values. Within the CAC 40, ACCOR is the company with the largest fall (-3.18%). It is followed by the aircraft manufacturer Airbus, down -2.30%.