Saturday, October 23, 2021

Banks, chipmakers pull down European stocks on growth concerns

European stocks struggled on Monday after their worst weekly performance since February, fueled by a growing number of risks including inflationary signals, higher bond yields and developer China Evergrande’s financial troubles.

The pan-European STOXX 600 index fell 0.5 percent, hitting a two-month low in last week’s selloff.

Banks, chipmakers and luxury stocks were the top losers on fears of a slowdown in global growth, as China, the world’s second-largest economy, deals with fresh COVID-19 restrictions, a property sector slowdown and regulatory clampdowns.

French luxury goods makers Kering and LVMH, which draw a large portion of their revenue from the country, fell 1.2 percent and 0.8 percent, respectively.

A survey showed investor morale in the euro area fell in October to its lowest level since April.

The STOXX has fallen 5 percent from a 600 record high hit in August on signs of slowing growth and inflation. BofA Global Research last week predicted a decline of about 10 percent by the end of the year, a shift towards an “anti-Goldilocks” in the macro background.

Jim Reid, a Deutsche Bank strategist, said: “Once the growth was disappointing not as much as had been expected at this stage, we should still be left with decent growth.” “I am not convinced that inflation is rising high enough for inflation to be the best description of the outlook for the next 12 months.”

Read Also:  Many migrants remain in the US even as evacuation flights increase

Morrison dropped 3.8 percent after US private equity firm Clayton, Dubillier & Rice (CD&R) won an auction for the UK supermarket conglomerate with a bid of 7 billion pounds ($9.5 billion).

Rivals Tesco and Sainsbury’s gained 1.6 per cent and 3.6 per cent, helping keep the UK’s FTSE 100 afloat.

UK telecoms conglomerate BT Group fell 5.3 percent after media reports Sky was closing in on a broadband investment deal with Virgin Media O2, which analysts at Jefferies said could threaten BT’s Openreach.

BT expects Sky to use the telecommunications provider as its partner for full fiber services, a person familiar with the situation told Reuters.

Shares of airlines including Ryanair, British Airways owner ICAG, and Wiz Air rose 0.1 per cent to 2.6 per cent after reports that the UK would open more countries to hotel quarantine-free travel later this week.

Some of the defensive sectors that diverge from an economic standpoint, including health care and food and beverage, were the top gainers.

Last week, data showed that an experimental antiviral pill developed by drugmaker Merck could halve the chances of dying or being hospitalized for people at risk of contracting severe COVID-19.

by Shruti Shankar

Follow

.

This News Originally From – The Epoch Times

Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -