Source: Sharecast
The pan-regional Stoxx 600 index was literally unmoved by the whole affair, while Germany’s DAX fell 0.4% while France’s CAC 40 was 0.2% lower.
In an extraordinary escalation overnight the egotistical duo traded barbs, with Trump threatening to withdraw billions of dollars’ worth of government contracts for Musk’s companies after Musk claimed the president wouldn’t have won a second term without his support.
Musk stands to lose billions in subsidies for his Tesla electric car business under Trumps plan for massive tax cuts – which will largely benefit the rich – and public spending, including medical programs for low income earners.
The spat was not without consequences as billions was wipe from the value of Tesla overnight, adding to the EV makers woes.
Musk’s behaviour in his short-lived role as a government-spending czar, along with his support for Germany’s far-right extremist AfD party has led to a slump in sales globally – sending shares in the company down by 25% since the start of the year.
“Investors were quick to recognise that this could threaten the more relaxed regulatory approach towards the company which had been in the pipeline as Tesla looks to expand its robotic and self-driving technologies,” said Interactive Investor head of markets Richard Hunter.
“Perhaps more importantly, the latest feud has also heightened unease that the president’s seemingly irascible and erratic behaviour is symptomatic of the environment which has been created on a global scale. Companies have already been stepping back from providing guidance comments for the next few months, while consumer sentiment is brittle given the wider context of what could be a weakening outlook.”
Back on planet earth, investors will be watching the US non-farm payrolls report later on the day.
“The release will garner particular attention given that it could awaken the Federal Reserve from its current holding pattern should the number be much weaker than expected,” Hunter said.
In equity news, sportswear and athleisure retailers Adidas and Puma were both lower after US peer Lululemon Athletica cut its annual profit forecast citing tariffs, economic uncertainty and consumer caution as shoppers cut discretionary spending.
Polish banks were lower again after the election of right wing nationalist Karol Nawrocki as president. Bank Polska Kasa Opieki, Powszechna Kasa Oszczednosci Bank, and Santander Polska all fell for the third straight session.
Reporting by frank Prenesti for Sharecast.com