logo
Plus   Neg
Share
Email

European Stocks Close Mostly Lower After Cautious Trade

European stocks ended mostly lower on Monday, as investors largely refrained from making significant moves, looking ahead to more stimulus announcements from the U.S. and other governments across the world, and escalating U.S.-China tensions.

News about the UK government imposing quarantine on travelers returning from Spain to prevent the spread of coronavirus infection, reports about rising new virus cases, and continued uncertainty with regards to trade talks between Britain and the European Union weighed on sentiment.

The pan European Stoxx 600 declined 0.31%. Among the major indices in Europe, the U.K.'s FTSE 100 shed 0.31% and France's CAC 40 slid 0.34%, while the U.K.'s FTSE 100 ended flat. Switzerland's SMI moved up 0.57%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Portugal and Spain weak.

Denmark, Iceland, Poland, Russia, Sweden and Turkey closed higher, while Netherlands and Norway closed flat.

In the U.K. market, travel stocks tumbled after the government announced that it would cancel all holidays to mainland Spain up to and including Sunday 9th August 2020.

TUI tumbled more than 11%. EasyJet ended nearly 8% down and IAG slid 5.7%. Rolls-Royce Holdings declined more than 3%.

Carnival shares ended lower by about 8.4%. Pearson and Melrose lost 6% and 5.3%, respectively. HSBC Holdings declined nearly 4%. Responding to Chinese media reports over dealings with Huawei Technologies Co., the bank denied media reports that it had "framed" the Chinese telecom giant and played a role in the arrest of the chief financial officer of Huawei.

Royal Bank, ITV, Lloyds Banking Group, British Land Company, Informa, BT Group and Burberry Group ended down 2 to 4%.

On the other hand, Fresnillo surged up more than 7%. Polymetal International gained 5.7% and Antofagasta rallied 3.4%. BHP Group, Intertek Group, Centrica, Rio Tinto and Centrica gained 2 to 2.3%,

In the French market, Sodexo, Societe Generale, Accor, Carrefour, Orange, BNP Paribas and Credit Agricole lost 2 to 4%.

Publicis Groupe, Technip and Safran also ended notably lower, while Valeo, Dassault Systemes Group, Schneider Electric, Michelin and STMicroElectronics ended with strong gains.

In Germany, Lufthansa shed more than 4.5%. Bayer, Deutsche Bank and Thyssenkrupp lost 2 to 2.4%. E.ON, Deutsche Telekom and BASF also ended notably lower.

Wirecard shares zoomed more than 15%. SAP, Infineon Technologies and Covestro gained 1.9 to 2.7%.

In economic news, German business confidence strengthened in July, reports said citing survey data from the ifo institute. The business confidence index rose more-than-expected to 90.5 from revised 86.3 in June. The reading was forecast to rise to 89.3.

The index measuring current situation came in at 84.5 in July. Economists had forecast the score to improve to 85.0 from June's initial estimate of 81.3. The expectations measure advanced to 97.0 from 91.4 a month ago. This was well above economists' forecast of 93.7.

Germany's economy shrank at a record pace in the second quarter, but recent indicators suggest activity increased significantly in recent weeks and the recovery is likely to continue in the second half of the year supported by the fiscal stimulus, Bundesbank said in its monthly report on Monday.

Bundesbank expects negative inflation rates from July due to the temporary lowering of VAT rates in the second half of 2020. "With the withdrawal of the VAT reduction in January 2021, the rates should turn out to be visibly positive again," the bank said.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT