European stocks fall sharply as fear of virus hurts sentiment

Shares despite some brilliant economic data, including a batch of the latest reports from Europe and the US market In Europe, it closed on a low note on Wednesday.

Uncertainty over the pace of economic recovery in a context of increasing delta variants Coronavirus Incidents and travel restrictions in some countries made me bearish.

There are also fears that more countries will impose tighter restrictions on migration if the virus outbreak does not show immediate signs of abating.

Investors appeared reluctant to create new positions, despite assurances from the European Central Bank and the Federal Reserve Board of Governors to continue their recent accommodative monetary policy.

The European STOXX 600 in the pot slipped 0.77%. The UK FTSE 100 fell 0.71%, the German DAX 1.02%, the French CAC 40 0.91% and the Swiss SMI 0.71%.

Among other European markets, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Spain, Sweden and Turkey have been considerably sluggish.

Denmark edged down, but Iceland and Russia closed at high prices.

In the UK market, Prudential, Evraz, ICP, Ocado Group, Just Eat Takeaway, Avast and Taylor Winpay fell 2-3%. Fresnillo, Bunzl, Barratt Developments, CRH, Glencore and Weir Group were also very sluggish.

Compass Group shares rose nearly 2% and Sainsbury (J) rose 1.1%. Scottish Mortgages, IHG and Next finished at slightly higher prices.

On the French market, Valeo fell by more than 4%. Renault, Faurecia, Kering, Michelin, ArcelorMittal, LVMH, StMicroElectronics, Society General, BNP Paribas, Air France-KLM fell by 1 to 3%.

Sodexo grew by nearly 3%, Airbus Group by 1.7% and Accor by around 1%. Ray-Ban maker Essilor Luxottica made a profit of around 0.4% after announcing plans to acquire Dutch eyewear chain Grandvision. Grandvison’s share has climbed over 14% today.

Among German DAX stocks Continental, Infineon Technologies, BMW, Volkswagen, Daimler, Allianz, Adidas, Deutsche Post, RWE and Heidelberg Cement fell 1-3%, while Fresenius Medical Care and Merck remained strong . did.

In business news, revised data from the Office for National Statistics found that the UK’s gross domestic product fell 1.6% in the first quarter, instead of the previously estimated 1.5% drop . GDP grew 1.3% in the fourth quarter of 2020.

UK Retail Consortium data shows UK store prices fell 0.6% in May and then continued to decline in June, down 0.7% year on year.

The unemployment rate in Germany fell more than expected in June, according to data from the Federal Employment Agency. The number of unemployed in June fell by 38,000 month-on-month, well above expectations of 20,000. According to the data, the unemployment rate in June remained unchanged at 5.9%, which was as expected.

Eurozone inflation was expected at 1.9% in June, down from 2% last month, according to preliminary data from Eurostat. Inflation exceeded the European Central Bank’s target of “below but close to 2%” in May.

According to a preliminary estimate from the Bureau of Statistics of INSEE, the rate of increase in consumer prices in France fell from 1.4% the previous month to 1.5% in June. The rate is expected to remain unchanged at 1.5%.

The Swiss economic barometer fell from 143.7 in May to 133.4 and was revised from 143.2. The findings of the Zurich-based think tank KOF were presented on Wednesday. Economists predicted a higher score of 144.7 in June.

Contact for comments and reactions: éditorial@rttnews.com

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