European stocks followed the bearish trend started in Asia overnight as global uncertainties linger and traders brace for a difficult month of September. Current declines on global benchmarks are mostly led by the Mining and Retail sectors as market sentiment is being slashed by a loss of confidence in a trade war resolution after officials from both the U.S. and China are said to be struggling to set a September meeting.
In Europe, this state of uncertainty is also compound by the latest development in the Brexit saga: British Prime Minister Boris Johnson remains opposed to a potential article 50 extension, as suggested by some Parliament members, saying this would make a deal with the EU “impossible”. Boris Johnson then tried to reassure everyone with a very optimistic tone regarding a deal to come, saying chances for him to reach an agreement with the rest of Europe during the next October EU summit was significantly high, based on the previous meeting he had with EU leaders. However, investors are worried and there are rising chances of another general election in the U.K.
On the stock market, the declines are not too significant as prices are consolidating after last week’s rally as investors await more information regarding the trade war and Brexit to adjust their trading strategies. The Stoxx-50 index found support over the 3,400.0pts price level with 3,442.0pts as the first major short-term resistance to the market.
