By Emily Horton
European markets began 2019 with Wednesday losses as a downbeat trading day in Asia, including worrisome Chinese data, played havoc with global market sentiment.
Software company Micro Focus International PLC /zigman2/quotes/207956281/delayed UK:MCRO -4.09% was Europe’s biggest loser, falling by 4%. Mining and oil stocks also came under selling pressure.
How are markets trading?
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.52% lost 1.7% to 331.97 on Wednesday, after finishing 2018 down 13.2%.
France’s CAC /zigman2/quotes/210597958/delayed FR:PX1 -0.23% was the biggest regional loser, falling by 2.6% to 10,393.65. U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.51% fell by 1.9% to 6,600.61, followed closely by Italy’s FTSE MIB index /zigman2/quotes/210598024/delayed IT:I945 -0.52% which lost 1.8%, while Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX -0.35% dropped by 1.6%.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.6000% slid to $1.1445 /zigman2/quotes/210561242/realtime/sampled EURUSD +0.6000% from $1.1466 late in New York on Monday. The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.1169% fell to $1.2698 from $1.2745.
What is driving the markets?
A temporary administrators has been appointed by the European Central Bank has for troubled Italian lender Banca Carige SpA /zigman2/quotes/209718518/delayed IT:CRG +15.38% , after the majority of the bank’s board members resigned on Wednesday, CNBC reported .
Asian stock markets tumbled after surveys showed Chinese manufacturing weakening. The Chinese manufacturing downturn “raises a few red flags,” said Vishnu Varathan, head of economics & strategy at Mizuho Bank. The slide is “not entirely surprising given more challenging global trade conditions,” but it is “potentially symptomatic of far sharper underlying demand pullback,” said Varathan.
In the U.S., President Donald Trump ramped up pressure on Democrats in an attempt to complete a funding debate over a border wall between the U.S. and Mexico, formally inviting them on Wednesday to a bipartisan meeting at the White House amid a partial government shutdown, the Wall Street Journal reported .
Pharmaceutical companies started off the New Year by raising the price of hundreds of drugs, with Allergan PLC increasing its prices by nearly 10% on more than two dozen products, according to a new analysis.
What stocks are active?
Software company Micro Focus International PLC /zigman2/quotes/207956281/delayed UK:MCRO -4.09% topped the European stock market losers, falling by just over 4%.
Mining and oil stocks also felt the heat, with BHP Group PLC /zigman2/quotes/203323256/delayed UK:BHP -1.49% and Tullow Oil PLC /zigman2/quotes/205079109/delayed UK:TLW -6.11% both lost close to 4%. In banking, Standard Chartered PLC /zigman2/quotes/200125072/delayed UK:STAN -2.85% fell by 3%.