Yin and Yang: European Markets down while Wall Street rallies on Friday

Chris L
Category:  Financial News
Stock markets around the world are trading in a kind of rollercoaster this week and Friday it is not the exception as the European markets are closing Friday with significant losses, including Michelin collapsing 7%; while Wall Street is opening the day with strong gains. 

Stocks in Europe are down as investors are concerned about the Italian political turmoil between anti-establishment government and the European Commission in recent weeks. The problem is the budget and the spending ambitions of the Italian Government. 

Also, auto, travel and leisure stocks traded down with the French Michelin dropping over 7% following a lower full-year forecast. Disappointing earnings have hurt market sentiment.

The FTSE 100 is trading 0.31% positive after gaining 21.94 points to 7,048.93. The CAC 40 is 0.12% down after falling 7.30 points to 6,042.80. DAX is 0.37% negative as it is losing 43.15 points to 11,546.06.

On the other hand, Wall Street is advancing as major indexes are bouncing from Thursday losses. As JJ Kinahan, Chief Market Strategist at TD Ameritrade said in a recent analysis, "the pendulum continues to swing," and it will move into positive territory "for now". 

"Today, it looks like it’s moving back into the green, thanks in part to China taking some measures to support its stock market. That said, continued volatility as this turbulent week marches toward a conclusion wouldn’t seem all that surprising," Kinahan stated. 

The Dow Jones Industrial Average is trading 0.62% positive as it is moving 156.43 points up to 25,535.88. The DJIA is 0.77% positive in the week. The S&P 500 is 0.68% up after gaining 18.74 points to 2,787.52. The S&P 500 is 0.70% positive in the week. 

The NASDAQ Composite is 0.97% positive or 72.54 points up to 7,557.68. The Nasdaq is 0.89% up in the last five days. 

As per industries, all sectors are trading positive on Friday with the Information technology component gaining 0.74% and acting as the leader. Then, communications services are posting 0.64% gains in the day, and energy is 0.46% positive. 

Real estate, with a 0.03% gain, industrials, which is 0.04% and financials, 0.22% positive, are the laggards. 
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