Europe falls 1% and DAX 1.9% while Wall Street rises
In short
- European shares fell on Friday: the Stoxx 600 lost about 1%, Germany’s DAX about 1.9% and the FTSE 100 1%.
- US indexes rose at the same time after strong jobs data.
- The next marker for the euro and pound is the ECB meeting on 16–17 December and the Bank of England on 17 December.
While Wall Street recovered part of its losses, European markets ended Friday in the red, led by German industrials and banks.
What happened
According to the Irish Times, the Stoxx 600 fell about 1% and the Stoxx 50 by 1.12%. Germany’s benchmark lost more than 2% and the FTSE 100 1.01%. HawkValue’s data at 06:41 on Saturday shows the DAX at 25,820 (−1.9% on the day), the Euro Stoxx 50 at 6,170 (−1.0%) and the FTSE 100 at 10,674 (−1.0%).
The paper gives three reasons: caution on tech stocks after several high-profile cyber attacks, lower oil prices as tension in the Middle East eased, and a sell-off in banks. BMW, Siemens and Deutsche Post each lost 3–4%, Shell fell 1.63% and Vodafone 2.43%. Ryanair and Rolls-Royce were among the few risers.
US markets went the other way. According to CoinDesk, the Nasdaq closed about 1.1% higher after a fall of around 5.5% on Thursday, the S&P 500 rose 0.3% and the Dow slipped 0.45%.
Central banks are in the background. The ECB held rates on 29 October (deposit rate 2.50%), and euro-area inflation was 3.8% in September. IC Markets says expectations of another ECB hike in December are supporting the euro. The Bank of England raised Bank Rate to 4.00% on 4 November, and its next meeting is on 17 December. German final inflation for October is due on Wednesday, with 2.8% a year expected.
What it means for you
If you hold European shares or funds, one weak day does not change the longer picture. The Euro Stoxx 50 is at about 6,170 against a 52-week range of 5,501 to 6,551.
The maths: $1,000 in a fund tracking the Euro Stoxx 50 lost about $10 on Friday (−1.0%). In a fund tracking the DAX it was about $19 (−1.9%), before currency effects and fees.
Track US and European stocks on the US stock market page.
Bottom line
Europe lagged the US on Friday, with German industrials and banks dragging the indexes down. Next week, German inflation on Wednesday and US consumer prices on Tuesday are the data points to watch.
Sources: Irish Times · IC Markets · CoinDesk
For information only. This is not investment advice.
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