(MENAFN– ecpulse)
Geopolitical tensions had its toll on European market in morning trade on Tuesday, sending stocks lower over fears of a potential military attack against Syrian President Bashar al-Assad’s regime.
Morning Equity movers
Europe’s stock benchmark index, STOXX 600 , slumped for the second day this morning, dragged by Antofagasata . Shares of the Chilean copper mining company slumped more than 3% after reporting first half revenue fell 12.1% from a year ago.
Britain’s FTSE 100 was back open after the Summer Banks Holiday on Monday.
Equities in Europe plunged the most in a week after U.S. secretary State John Kerry said the Obama Administration will hold Syria accountable for using Chemical weapons.
As of 04:06 a.m. EST:
- FTSE 100 was down 0.74% at 6,443.90
- CAC 40 plunged 1.29% to 4,014.85
- DAX shed 1.25% to 8,329.97
- Stoxx Europe 50 was down at 2,701.19.
The U.S. warning late yesterday sent a disturbing alarm across the FX markets. Wall Street took the hit apparently, with the Dow Jones Industrial Average closing falling below 15,000-mark on Monday.
In Italy, the political scene was also unsettled starting this week, as the risk of a new government continued to threaten the country’s fragile economy.
The prospects of political stability in Italy is back under the knife, after members of Silvio Berlusconi`s center-right party warned they would down the government if the former premier is expelled from parliament over a recent conviction.
He warned that if the government collapsed just as the euro zone`s third-largest economy was showing the first signs of recovery after a two-year recession, there would be "enormous costs" for society and renewed jitters in the financial market.
Tensions surfaced again in the FX markets in the wake of these updates, fueling a selloff in companies exposed to Italian sovereign debt. Italy`s FTSE MIB share index slumped more than 4% since yesterday, paring last month`s 6.8 percent climb.
In Germany, a report from the Munich-based Ifo institute for Economic Research showed that business confidence rose for the fourth month in August. The Ifo business climate index rose to 107.5 from 106.2 last month, beating the consensus forecast of 107.0.
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