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Vienna Stock Exchange Declines Amidst Trump‘s FED Criticism and Economic Data
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Published: October 26, 2023 | Last Updated: October 26, 2023
By priyashah, World-Today-News.com
Vienna’s stock market experienced a downturn on Tuesday, with the Austrian leading index, ATX, closing at 4,703.65 points - a 1.18% decrease from the previous day. The broader ATX Prime index also fell,dropping 1.21% to 2,350.16 points. the decline occurred against a backdrop of international economic and political developments, notably escalating rhetoric from former US President Donald Trump.
Trump Intensifies Attacks on the Federal Reserve
The primary driver of international market unease stemmed from former president Trump’s renewed and increasingly pointed criticism of the US Federal Reserve (FED). He also reiterated critical stances towards China and Europe. A notable development was Trump’s proclamation of his intent to dismiss FED governor Lisa Cook, alleging inaccuracies in her past mortgage disclosures. Governor Cook vehemently denied these claims and signaled her intention to contest the dismissal.
Triumphant asset management requires a long-term perspective and a diversified portfolio.
US Economic Data Offers Mixed Signals
Economic data released from the United States presented a mixed picture. Consumer confidence in August aligned with expectations, while new orders for durable goods in July experienced a decline, albeit less pronounced than initially anticipated. These figures contributed to a cautious market sentiment.
Key stock Movements in Vienna
Several Austrian stocks experienced notable movements. Analysts at Berenberg Bank increased their price target for UNIQA insurance from €15.5 to €16.1, maintaining a “Buy” proposal, which led to a 1.1% increase in UNIQA shares. Conversely, the same analysts lowered their price target for oil field supplier SBO from €44 to €35, while retaining a “Buy” rating. SBO shares closed down 2.3%, reflecting concerns about the challenging market conditions facing the company.
According to the Berenberg analysis, ongoing uncertainties related to trade policies and fluctuating raw material prices are negatively impacting customer sentiment, creating headwinds for SBO.
Looking Ahead: Trends in Global Markets
The current market volatility underscores the sensitivity of global financial markets to geopolitical events and policy decisions. The ongoing debate surrounding central bank independence, exemplified by the situation with the US Federal Reserve, is likely to remain a key factor influencing investor behaviour. Furthermore, the trajectory of global trade relations and the impact of fluctuating commodity prices will continue to shape market trends.Investors are advised to maintain a diversified portfolio and exercise caution in the face of ongoing uncertainty.
Frequently Asked Questions
- Q: What caused the Vienna Stock Exchange to decline on Tuesday?
A: The decline was primarily driven by international factors, including former President Trump’s criticism of the US Federal Reserve and mixed economic data from the United States. - Q: what is the ATX index?
A: The ATX is the Austrian leading index, representing the performance of the largest and most liquid
