Tensions between the US and China penalize European exchanges. Drop of almost 3% of CTT penalizes PSI 20

The main Portuguese stock index fell 1,11%, to 4.353,95 points, in line with the main European counterparts.

The main Portuguese stock index (PSI 20) fell 1,11%, to 4.353,95 points, in line with the main European counterparts, on a day when investors feel a new escalation of tensions between the United States and China.

“To mark the morning are the statements by China's top diplomat stating that the US has tried to start a new Cold War between the two largest economies in the world. The Chinese State Councilor and Minister of Foreign Affairs also stated that relations between the two countries face the biggest challenge since the establishment of diplomatic ties, blaming the USA for this deterioration ”, commented Millennium BCP Mtrader, Ramiro Loureiro.

US Secretary of State Mike Pompeo said on Wednesday that Washington is prepared to ban more applications of Chinese origin in addition to the social network Tik Tok, due to US national security issues. China and the US will return to the negotiating table on August 15 to discuss the first phase of the trade agreement again.

Data on orders from German factories could also influence investors. Orders contracted less than expected in June. Thus, orders to German factories contracted 11,3% year on year, in June, when analysts estimated a drop of 18,5%.

In Portugal, of the 18 companies listed on the PSI 20, only two value and one negotiates without variation. In the middle of the stock exchange session, the focus is on CTT titles.

The company led by João Bento revealed on Wednesday, after the closing of the session, that it had a loss of two million euros in the accounts of the first half of 2020. In the same period of 2019, CTT had recorded a profit of nine million euros. CTT sinks 2,72% to 2,50 euros.

The falls in BCP (-1,75%), Galp (-2,15%) and NOS (-1,93%) also contribute to the downward performance of PSI 20.

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