NEW YORK: European stocks ran into profit-taking on Friday as many investors, wary of global uncertainty and US President Donald Trump’s volatile Twitter diplomacy, cashed out before the weekend, traders said.
Bourses in Paris and Frankfurt had posted solid gains earlier in the session after Trump put off a decision about military strikes in Syria, giving investor nerves a welcome break. Although tensions appeared to be easing, few dared to carry positions into the weekend, fearing they may regret it come Monday morning.
Equity markets in Europe finished with modest gains. US stocks opened in the positive territory, but quickly came under pressure after a batch of earnings reports from large US banks sparked a sell-off in financial shares.
“You had a sector sell-off in financials,” said Art Hogan, chief market strategist at Wunderlich Securities. “When the group started selling off, it took the whole market with it.”
Published in The Express Tribune, April 15th, 2018.