Plus   Neg

European Markets Recovered Some Lost Ground

The European markets ended Monday's session with modest gains. The markets staged a bit of a recovery after the heavy losses of the previous week. Investors were largely able to shrug off concerns over global trade, despite elevated trade-war rhetoric from U.S. President Trump with China and Japan.

The election results from Sweden over the weekend also grabbed the attention of investors. The country will need to put together a coalition government after its two largest political alliances failed to win a majority. The Sweden Democrats, a far right group with roots in neo-Nazism, is estimated to have received 17.6 percent of the votes.

France's economy is forecast to grow as previously estimated in the third quarter, a monthly Bank of France survey revealed Monday.

According to the monthly index of business activity, gross domestic product is set to expand 0.4 percent in the third quarter, unchanged from the previous estimate.

The pan-European Stoxx Europe 600 index advanced 0.47 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.49 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.42 percent.

The DAX of Germany climbed 0.22 percent and the CAC of France rose 0.33 percent. The FTSE 100 of the U.K. gained 0.02 percent and the SMI of Switzerland finished higher by 0.99 percent.

In Frankfurt, Apple supplier Dialog Semiconductor fell 3.18 percent after U.S. President Trump called for Apple to move production from China to the U.S.

Hannover Re shares gained 0.08 percent. The re-insurer said that it is well on track to achieve its 2018 year-end targets, based on the business development so far and the company's positioning in the market.

In London, GlaxoSmithKline slid 0.92 percent. The U.S. FDA has asked for more clinical data about its Nucala drug for use in combatingchronic obstructive pulmonary disease.

Associated British Foods dropped 0.79 percent after retaining its full-year outlook.

RPC Group soared 17.99 percent. The plastic packaging maker said it was in early talks about a possible sale of the company.

Luxury goods group Richemont advanced 1.02 percent in Zurich after appointing group veteran Jerome Lambert as its chief executive.

Eurozone investor confidence deteriorated unexpectedly in September, survey data from think tank Sentix showed Monday. The investor sentiment index fell to 12.0 in September from 14.7 in August. The score was forecast to rise to 15.0.

The UK economy expanded at the fastest pace in almost a year in July as warm weather boosted retail sales amid a recovery in construction.

Gross domestic product grew 0.6 percent in three months to July, the fastest since August 2017, data from the Office for National Statistics revealed Monday. The rate was faster than the expected 0.5 percent and 0.4 percent posted in the second quarter.

UK industrial production logged a marginal less-than-expected growth in July, the Office for National Statistics reported Monday.

Industrial output climbed 0.1 percent in July from June due primarily to a rise in mining and quarrying of 3.3 percent. Economists had forecast industrial output to gain 0.2 percent in July.

The UK visible trade deficit narrowed in July, the Office for National Statistics said Monday. The deficit on trade in goods fell to GBP 9.97 billion from GBP 10.68 billion in June. At the same time, the surplus on services increased to GBP 9.8 billion from GBP 9.7 billion a month ago.

China's inflation accelerated to a 6-month high in August, while producer price inflation eased reflecting soft domestic demand, official data showed Monday. Inflation accelerated to 2.3 percent in August from 2.1 percent in July, the National Bureau of Statistics reported. Inflation was expected to remain at 2.1 percent.

Another report from NBS showed that producer price inflation eased to 4.1 percent in August from 4.6 percent in July. However, the rate was slightly above the expected 4 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT