European Stocks Fall as Global Growth Worries Linger
By Investors Hub
European stocks have fallen on Monday, as global growth worries linger and the dollar weakens slightly ahead of key central bank meetings this week, with the Fed widely expected to raise its benchmark interest rates Wednesday by 25 basis points.
Traders are also digesting media reports suggesting that the Italian government has forged a deal with populist leaders to submit a revised budget proposal to the European Commission.
Elsewhere, U.K. Prime Minister Theresa May faces parliament today and it is expected to urge Members of Parliament not to “break faith with the British people” by demanding a second referendum.
While the French CAC 40 Index has dropped by 0.8 percent, the German DAX Index and the U.K.?s FTSE 100 Index are both down by 0.7 percent.
The dollar weakened slightly on fears of a possible U.S. government shutdown at midnight on Friday over security on the border with Mexico.
Asos shares have plummeted in London after the British retailer warned of lower profits this financial year. Next Plc and Marks & Spencer have also moved notably lower along with German online fashion retailer Zalando.
Acacia Mining has also slumped after the company said it has been in contact with the SFO about allegations of corrupt activities in Tanzania, which are the subject of proceedings in Tanzania.
On the other hand, mining giant BHP has rallied as it announced a special dividend after selling its U.S. shale assets.
Swiss engineering group ABB has also risen after it agreed to sell 80.1 percent of its Power Grids division to Japan’s Hitachi.