European markets must “close ranks” in light of U.S. disengagement - analyst

Record ID: 877144

  • Title: European markets must “close ranks” in light of U.S. disengagement - analyst
  • Date: 29th May 2017
  • Summary: FRANKFURT, GERMANY (MAY 29, 2017) (REUTERS) VARIOUS OF EXTERIOR FRANKFURT STOCK EXCHANGE TRADING FLOOR SIGN, READING (German) "FRANKFURT STOCK EXCHANGE" TRADER ELECTRONIC BOARD SHOWING DAX GRAPH TRADERS LOOKING AT MONITORS ELECTRONIC BOARD SHOWING START OF DAX AT 12,588.80 ELECTRONIC BOARD SHOWING CHANGES IN DAX VARIOUS OF TRADERS ELECTRONIC BOARD SHOWING HIGH OF DAX AT 12,599.96 AND PAN TO LOW AT 12,579.06 TRADING FLOOR TRADER TALKING TO HEAD OF CAPITAL ANALYSIS AT BAADER BANK, ROBERT HALVER TOY BULL ON MONITOR (SOUNDBITE) (German) HEAD OF CAPITAL ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "It will be a very boring week. We will see very little (new) data. We maybe have the job market data, a speech of Mr. Draghi which we don't expect to bring very much. It is an impasse situation, nobody really wants to buy, nobody really wants to sell. Everyone wants to be present, but not invest that much." TRADER (SOUNDBITE) (German) HEAD OF CAPITAL ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "It will be interesting to watch how the 'leader of the free world' (U.S. President Donald Trump) will conduct himself. But Europe must finally understand that it must stick together. It will be very hard because we all have our own interests in Europe. But maybe that is the wake-up for finally closing ranks. Because if the great alpha leader does not want to be the great alpha leader in the U.S. anymore, then Europe only has a chance by sticking together. But that is easier said than done. It will mean several painful cuts, like we might be forced into Eurobonds at some point by the French, in order to present a compact appearance. Well, the price will be high, but there won't be an alternative to sticking together in Europe. As hard as it may be." ELECTRONIC BOARD SHOWING BANKING SHARES TRADER (SOUNDBITE) (German) HEAD OF CAPITAL ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "Europe tries to explore other paths in order to find allies. China, India, but we also need to be very clear: China and India have also very clear-cut interests of their own. They also know quite well that Europe is beleaguered. And they exploit that. There are no 'Mother Theresa' principles in world economy. Everyone wants the maximum for themselves. And therefore, and as unexciting as it may sound (to repeat that), Europe must finally understand that it must close ranks." TRADER ELECTRONIC BOARD SHOWING DAX GRAPH TOP SHOT OF TRADING FLOOR
  • Embargoed: 12th June 2017 09:41
  • Keywords: Merkel Trump U.S. EU
  • Location: FRANKFURT, GERMANY
  • City: FRANKFURT, GERMANY
  • Country: Germany
  • Topics: Economic Events
  • Reuters ID: LVA0016IW4L8T
  • Aspect Ratio: 16:9
  • Story Text: Eurozone shares fell slightly on Monday (May 29), pulling back further from their highest point in almost two years, dragged lower by financial and as holidays in major markets such as the UK and the United States kept investors away.
    European blue chips eased 0.1 percent, Germany's DAX started the weeks little changed.
    In Frankfurt, capital analyst Robert Halver of Baader bank said that Europe must "stick together" if it wants to successfully counter an economic pull-out from the U.S.
    "If the great alpha leader does not want to be the great alpha leader anymore, then Europe only has a chance by sticking together," Halver told Reuters. He said that it will come at a cost, though.
    While Europe is looking at new allies in the east, it should be aware that countries like China or India have their own economic agenda and interests. They are very aware that Europe is 'beleaguered', and will exploit that, Halver said.
    On Monday in Frankfurt All main sectors on the European benchmarks were trading in the red. Regional banks were among the biggest drags, however, as investors continued to lock in some gains following the sector's stellar run from last summer's lows.
    The dip in oil prices, exacerbated by a relentless rise in U.S. drilling that has undermined an OPEC-led push to tighten supply spurred investors, has dented appetite for risky assets among some investors over the past week.
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