On Friday, European stock markets were a little lower, after being slightly higher earlier in the day. The main reason for the drop was that healthcare company stocks went down.
For example, the stock for the drug company Novartis fell after an investment bank said it faced more competition from cheaper drugs.
Stocks for luxury brands like L.V.M.H. and Richemont also declined, as a different bank suggested they were not good investments right now.
The market is also waiting to hear whether a major ratings agency will lower France’s credit rating, which is adding to the uncertainty.
On a positive note, companies in the aerospace and defense sector are having a very good week, with their stocks rising sharply. This is happening because of recent global tensions, which have boosted investor confidence in that industry. Despite the overall market drop today, French stocks are still on track to end the week with a gain.
On the FX front, the U.S. dollar is a little stronger today, but it is still on track to end the week weaker than it started.
The Euro didn’t change much in value. It had risen the day before because traders now believe the European Central Bank is less likely to cut interest rates again, as the bank seems confident about the economy.
The British Pound is a bit weaker after new data showed the UK economy did not grow at all in July. Finally, the Chinese yuan and the Australian dollar also slipped slightly, although the Australian dollar remains near its highest value in almost a year.
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