European stock exchanges slipped yesterday on political events surrounding the west. Investor sentiment has remained bearish.
The pan-European index of shares STOXX 600 lost 1.2% early in the session. Tech stocks dropped 2.2%, spearheading the losses. All sectors and indexes traded in the negative territory.
Markets are focusing to the updates over US Democrats’ bid to impeach US President Donald Trump.
House Speaker Nancy Pelosi announced the inquiry two days ago. It followed the concerns over Trump’s pushing of Ukraine to investigate Joe Biden. Biden is a Democrats and aspires to run for presidency in the next elections.
In Asia, markets were none the better. Traders followed US political developments and the rhetoric from the US and China.
In the UN General Assembly on Tuesday, Trump said he would not accept a “bad deal” in trade talks. On the flipside, China’s diplomats said the country wouldn’t accept threats or interference.
Stock Exchanges Wobbly on Political Issues
More political uncertainty clouds the outlook for the markets. Over in the United Kingdom, British Prime Minister Boris Johnson recently received a serious loss.
UK Supreme Court ruled that Johnson’s decision to suspend Parliament weeks before Brexit was unlawful. The BPM said he disagreed with the decision.
He added that he would take the UK out of the European Union by October 31.
After the ruling, the MPs will reconvene in Parliament. Lawmakers now call for the BPM to resign after the ruling against him.
On the corporate level, Thyssenkrupp’s board wants CEO Guido Kerkhoff to leave the company. This comes after multiple profit warnings.
This is another blow to the company that has been trying to restructure and bring back life to the business. Earlier this year, the company tried to sell or list some parts of its elevators business.
Supervisory Board Chairwoman Martina Merz will replace Kerkhoff as interim CEO.
COMMENTS