EU stock markets mixed after Wall Street’s Trump rally

European stock markets mixed after Wall Street’s Trump rally. European stocks were mixed at the close yesterday, as Wall Street held on to the previous day’s gains which had taken it to a record closing high, dealers said. In New York, the blue-chip Dow Jones Industrial Average index – which had breached the psychological barrier of 20,000 points on Wednesday – was again modestly higher yesterday, adding around 0.2%.

Frankfurt’s DAX 30 index closed 0.4% higher at 11,848 points yesterday as the enthusiasm for US President Donald Trump’s America First policies was less palpable in European markets
Frankfurt’s DAX 30 index closed 0.4% higher at 11,848 points yesterday as the enthusiasm for US President Donald Trump’s America First policies was less palpable in European markets
But in Europe, the London’s FTSE 100 was flat at 7,161.49, while Frankfurt’s DAX index closed 0.4% higher at 11,848 points. “Wall Street opened higher” but “the enthusiasm for President (Donald) Trump’s America First policies was less palpable in European markets,” said London Capital Group analyst Jasper Lawler. The expert said traders had been unimpressed by new data in London showing that the British economy is shrugging off the impact of Brexit. The British economy grew by 0.6% in the final three months of last year and by 2% over 2016, official data showed, as the country prepares to begin its departure from the European Union later this year.

“Markets are forward-discounting mechanisms and while the growth was faster than expected, it’s already well-understood the much lamented Brexit slowdown never happened,” Lawler said.  In New York, traders said investor attention had now switched to a raft of different corporate earnings reports.  A wide array of large companies, including in media, chemicals, autos and pharmaceuticals, released results, including big names such as Ford and Bristol-Myers Squibb.
“The reactions to the earnings reports and guidance has been mixed, which helps explain the lack of upside momentum in the futures market at this point,” said Briefing.com analyst Patrick O’Hare. This week, investors appeared to have refound their enthusiasm and optimism about Trump following weeks of unease.  The new lease of life came after the tycoon signed a series of executive orders pushing his pro-growth agenda, including giving the green light to two huge, controversial oil pipeline deals through the US. There are hopes he will press on with other promises to ramp up infrastructure spending, cut taxes and do away with various regulations he considers a hindrance to businesses.

Sources: QGN, GT, GN, Bloomberg, BBC News.