After already starting the session in negative territory, the main European stock markets ended in the day deeper in negative territory, as Wall Street gave up its initial gains while investors awaited a volley of corporate earnings reports and economic indicators.
London’s FTSE 100 was 0.7% down at 7,237.17 points, Frankfurt’s DAX 30 was 0.2% down at 12,443.79 points, Paris’ CAC 40 slipped 0.3% at 5,271.70, while the EURO STOXX 50 shed 0.4% at 3,563.29 points at close yesterday.
In Frankfurt, the European Central Bank held its key interest rates unchanged at historic lows and its massive bond-buying programme intact, as expected, at its regular policy meeting.
After notching up gains earlier in the week, investors were currently taking profit, traders said.
“The euro and equity markets have had a strong week so far, thanks mainly to a market-friendly outcome of the French first round presidential election at the weekend,” said Forex.com analyst Fawad Razaqzada.
“The stock markets in Europe also sighed relief as fears about the future of the European Union receded.”
Financial markets also appeared to take in their stride the outlines of President Donald Trump’s tax cut proposals and plans to renegotiate the North American Free Trade Agreement, said Briefing.com analyst Patrick O’Hare.
On Wednesday, the White House had unveiled plans to slash corporate and individual rates, but there were few details and several questions over how the measures will be paid for.
The proposals are part of a wide-ranging plan to fire the world’s top economy, which also includes ramping up infrastructure spending and wiping away business regulations.
London Capital Group analyst Jasper Lawler said that while Trump was set to mark his 100th day in office on Saturday, the fact that the president “hasn’t checked off every box on his 100-day to-do list is not a reason to panic.
“From a markets standpoint, very few of Trump’s pledges for the first 100 days really matter.
Markets specifically want Trump to get the job done on tax cuts, infrastructure spending and deregulation.
Significant policy overhauls can’t happen in 100 days,” Lawler said.
Earlier in Asia, Tokyo stocks fell 0.2% after a four-day rally, with dealers unmoved by the Bank of Japan’s decision to lower its inflation target and stand pat on its monetary easing programme.
But Hong Kong climbed 0.5% for a sixth-straight gain, while Sydney added 0.2% and Shanghai ended 0.4% higher.
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