European stock market is experiencing serious fluctuations and dips in the stock prices due to two major events happening across the corner. These two key events are the U.K. general election and the European Central Bank policy decision which led to the dip for past two days. The takeover of Banco Popular Espanol SA by Banco Santander SA added fuel to the fire and the stock Index dipped further by 0.1 percent in the Stoxx Europe 600 index. Even Euro Stoxx50 suffered a downfall of 0.4percent in their index in their previous 50 days moving average index. Investors are very skeptical about the fluctuations and are trying to minimize the risk due to so many geopolitical events happening around which would definitely impact their decision-making system.
This also impacted the share price of Santander which suffered downfall in their share prices by 3.4 percent before they started trading in the market at price of lower than the earlier price by 0.3 percent. Spain regulators have already suspended the shares of Popular Espanol SA and Santander SA had already started their activity to raise funds of $7 billion to purchase Popular Espanol SA. The UK elections would be happening on Thursday and the Surveys and opinions of the UK public seem to have put a lot of pressure on the Prime Minister Theresa May to maintain her majority in the house. On the same day, European Central Bank would be releasing her decisions related to the interest rates and there are speculations about the central bank changing their introductory statement so that they can highlight and appreciate the growth prospects in the Euro area.
All the sectors and industries have suffered a downfall in their share prices and these to events are currently catching the attention of all the people across Europe. The chemical industry suffered the most after Bayer Ag decided to remove their stake from Covestro AG leading to a huge fall in the Stoxx 600 index. Wells Fargo Bank has recently encountered a controversy for which they had to pay a huge fine of $185 million which led them to reduce their stake in European equity holdings in order to take advantage of the emerging market by switching their stake and risk. Many investors have put all their investing activities to halt until these major events get over and the outcome is visible for them to make proper decisions related to their investments.