European shares slipped on Wednesday following the trend set by US stocks at the end of the trading session yesterday. Despite good news from China, after Beijing announced the government will prepare to proceed with further US pork purchases, investors remain cautious with their stock exposure.
Market sentiment has been slashed yesterday evening after the speaker of the US House of Representatives, Nancy Pelosi, triggered a formal impeachment inquiry on President Trump, saying he has “seriously violated the constitution” by putting pressure on Ukraine’s President Zelensky during a phone call to investigate his then political rival Joe Biden. The fall-out on the stock market remains somehow limited for now as this impeachment inquiry is unlikely to pass a Senate which controlled by a Republican majority. However, this adds further political uncertainty over the US and some investors are starting to wonder whether the FED will be able to battle both an economic slowdown and the negative impacts of political chaos in Washington.
Elsewhere in Europe, the Stoxx-600 is being dragged lower by Techs and Energy shares while Boris Johnson is now back in Britain, having cut short his trip in New York, following the UK Supreme Court decision stating that his Parliament prorogation was unlawful. The FTSE-100 index in London continues to trade lower following the Pound Sterling’s surge yesterday shortly after the Supreme Court’s decision. The market has now broken-out the 7,207.0pts support level, is trading towards 7,190.0pts currently and has now an entire open zone until the next support level located more than 30-points lower, at 7,160.0pts.
