The only reason I can think of for the early strength in Europe stocks was a flow-driven unwind in volatility and option trades. In any case, the market later figured out that Trump’s plan is to put tariffs on Europe.
Closing changes:
Stoxx 600 -0.6%German DAX -1.1%France CAC -0.7%UK FTSE 100 -0.2%Spain IBEX -2.9%Italy’s FTSE MIB -1.6%
Eyes will be on DAX 19,000 tomorrow as key support.
This article was written by Adam Button at www.forexlive.com.
