Weak financial data in financial reports further worsened the mood in Germany
Financial Markets in Europe in Decline
The European stock markets experienced a decline for the fifth consecutive day against the backdrop of a global technological downturn, according to Bloomberg. Most companies around the world were facing difficulties – from communicating with clients to offering services. At airports, passenger check-in had to be done manually, leading to long queues.
These issues led to a sharp drop in stock prices.
Tourism and airline industries affected by recent decrease
According to CNBC, the tourism and airline industries have been among the most affected by the recent downturn, with a decrease of over 2% in the last day of the week.
Stock Markets in Europe
Most sectors of the Stoxx 600 were also in the red, with the pan-European index closing the week at 510.03 points, a decrease of 0.77%.
In Germany, weak financial reports contributed to the negative sentiment, with the DAX closing down 1% at 18,171.93 points. The French CAC 40 lost 0.69% to 7,534.52 points, and the leading index of the London Stock Exchange, FTSE, closed at 8,155.72 points.
European Stocks Decline Amid Political Uncertainty
European stocks fell this week after reaching record highs, as uncertainty surrounding the upcoming presidential campaign in the United States weighed on the markets. The European Central Bank’s decision not to change interest rates in the eurozone also added pressure.
Investors are also concerned about instability in France following the early elections in early July, according to Bloomberg. Additionally, technical issues related to the Microsoft crash caused a 0.6% drop in the LSE stock exchange.
The price of oil has also been affected by these developments, but the overall impact remains to be seen as markets continue to react to changing political and economic conditions.
Oil prices drop due to strong dollar and concerns over Chinese demand
The leading oil benchmarks have dropped by around 2% as the dollar strengthens and concerns over Chinese demand for oil increase. The American light crude oil (WTI) is trading at $80.85 per barrel at the end of the European trading session.
The European benchmark “Brent” has reached a price slightly above $83 per barrel.
In the currency markets, the US dollar has risen by 0.1% against major world currencies. One euro is exchanged at $1.0881. Trading with the British pound is at $1.2908 per pound.
Meanwhile, the price of gold continues to decline…
Gold Prices Hit Record High
Gold prices reached a record high of $2483.60 per ounce on Wednesday, amidst a strengthening US dollar. Trading is currently at $2400.40 per ounce, a decrease of over 2% compared to Thursday’s closing.
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