The summer sequence was marked by a decline in the 600 stocks included in this expanded index from the 17 European countries. Stoxx Europe 600 has therefore fallen by 3.7% since the beginning of July, when the trade dispute broke out. Nevertheless, a few cases involving takeover bids were able to stand out.
The British aeronautical equipment manufacturer Cobham, following the offer of the American fund Advent, gains +47%. Next in the crowd, another British company that is advancing by 40%, Greene King (brewery) bought by a Hong Kong fund. The Danish language, Pendora also progresses by 32% thanks to a good communication on its prospects.
On the other hand, among the sharp declines, let us note the basic resources affected by the trade war and the banks, such as the Irish AIB, which fell during its publications and conceded 35% over the last two months.
Graphically, in daily data, prices have just tested the good low of 365 points during the violent drop of 384 points. A period of reflection is taking place among investors, hesitating between the possibility of still making profits under relevant conditions and the concern not to miss a technical recovery.
It will therefore be necessary to wait until the 376 points have been crossed before switching back to neutral mode, with a target of 384 points. On the other hand, a break of the 365 closing points would take the index to 358 points.