The main Portuguese stock index (PSI 20) fell 1,11%, to 4.341,61 points, in line with the main European markets. Of the 18 listed companies, only five value and one negotiates without variation.
The securities of Altri (-2,25%), BCP (-1,31%), Mota-Engil (-1,58%) and NOS (-1,66%), are the ones that most penalize the PSI 20. Among these listed companies, NOS stands out. The telecommunications company starts this Wednesday, trading for the first time without the right to a dividend for the year of 2019, in the amount of 0,278 euros per share, which corresponds to a dividend yield 7,2% considering Tuesday's closing price. The dividend will be paid as of July 3.
Among the main European markets, the “good data of industrial activity in the euro zone bring little encouragement to the exchanges”, according to Millennium BCP's Mtrader, Ramiro Loureiro.
Industrial activity in the eurozone eased the pace of contraction in June. The Eurozone PMI Industry indicator went from 39,4 to 47,4, “when 46,9 was estimated, thus showing that the manufacturing activity slowed the pace of contraction in June”, says the analyst. By regions, the PMI of Germany (from 36,6 to 45,2, when 44,6 was expected), of France, which returned to expansion (from 40,6 to 52,3, when the estimate was of. 52,1), from Spain (from 38,3 to 49, when the estimate was .45,1), from Italy (from 45,4 to 47,5, when the estimate was 47,8).
Industrial activity in China has also shown an above-expected expansion. Chinese industrial activity rose from 50,7 to 51,2 in June. The 50 line separates territory indicative of contraction from that of expansion. Still in Asia, Japanese manufacturing activity slowed the pace of contraction: PMI Indústria rose from 38,4 to 40,1. Even so, Asian indicators are not enough to encourage investors.
Investors are also reacting to an eventual escalation of tensions between the United States and China. After the U.S. Department of Commerce announced on Monday that it will suspend regulations that give Hong Kong special treatment with regard to export license exceptions, China passed the national security law in Hong Kong.
This law empowers China, and in less than 24 hours after the new law was passed, Hong Kong police announced their first arrest under the new law. In Europe, the British government was "very concerned" about the controversial law and the European Union considers it to be a "very serious" issue, which will require an answer, to be agreed with international partners.
Regarding Asia, the International Monetary Fund released a projection that points to the loss of economic production in that continent by 2022, due to the new coronavirus. In 2019, Asia contributed about 68% of global growth, according to Millennium BCP's Mtrader, Ramiro Loureiro.
Also of concern to investors, which influences the direction of the negotiations, are the statements by the main infectious disease specialist of the Trump administration, Anthony Fauci. Fauci alerted lawmakers to the possibility of new coronavirus infections in the U.S. rising to 100 nil new cases a day if behaviors do not change.