European Stocks Slump for 6th Session Amidst Higher Interest Rates Fret
By Investors Hub
European stocks are falling for a sixth consecutive session on Monday as investors fret about higher interest rates and coalition negotiations between German Chancellor Angela Merkel’s conservative party and the Social Democrats broke down over the weekend.
French President Emmanuel Macron’s party lost two by-elections for parliamentary seats on Sunday and the dollar paused after recovering somewhat on Friday on the back of robust U.S. employment data, further weighing on markets.
While the German DAX Index is down by 0.9 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are down by 1.3 percent and 1.4 percent, respectively.
Ryanair has fallen sharply after the budget carrier warned of some localized disruptions and adverse PR in the months ahead.
Global consulting and IT service firm Capgemini has also moved to the downside after announcing the acquisition of LiquidHub.
German airline Lufthansa has fallen after it unveiled plans to replace top management at Brussels Airlines..
In economic news, the euro area economy expanded at the fastest pace since mid-2006 in January, final data from IHS Markit showed.
The final composite output index rose more than initially estimated to 58.8 in January from 58.1 in December. The flash score was 58.6.
A gauge of Eurozone investor confidence weakened in February, while the region’s retail sales declined in December after recovering a month ago, separate reports showed.
Elsewhere, British service sector activity expanded at the slowest pace in nearly one-and-a-half years in January, survey data from IHS Markit showed.