European markets hit by disappointing China trade data
Reuters
European markets dropped on Monday, tracking losses for global equities as weak Chinese data triggered global economic concerns
Drug and bank names also contributed to the weakness, while in the U.K., investors had one more worry — a parliamentary vote on Prime Minister Theresa May’s contentious Brexit withdrawal agreement Tuesday.
How are markets trading?
All major European indexes struggled on Monday, with the Stoxx Europe 600SXXP, -0.59% losing 0.9% to 346.20, after finishing up 1.7% for the week on Friday.
Italy’s FTSE MIB I945, -0.63% index was the biggest regional loser on Monday, dropping 1% to 19,092.30. France’s CAC 40 PX1, -0.41% dropped 0.7% to 4,749.16, the U.K.’s FTSE 100 UKX, -0.72% fell 0.8% to 6,861.70 and Germany’s DAX 30 DAX, -0.31% lost 0.6% to 10,826.20.
The euro EURUSD, -0.0087% traded remained mostly unchanged from $1.1469 late in New York on Friday.
X
See Also
The British pound was bouncing around on Monday, with a crucial vote on May’s Brexit deal just a day away. The pound GBPUSD, +0.1246% was trading at $1.2849 from $1.2830 late Friday in New York.
What is driving the markets?
Weaker-than-expected Chinese trade data hit investor appetite for perceived riskier assets, such as stocks, and sparked fresh worries over a global economic slowdown. Some luxury goods companies, many of which get a chunk of their business from China, took a hit, with Christian Dior SE CDI, -2.47% down over 2%.
In the U.K., markets are expected to remain on edge ahead of Tuesday’s vote over a deal for Britain to leave the European Union. May’s plan is expected to be rejected by lawmakers, leaving the current Conservative government to likely face a vote of no confidence from the opposition Labour Party, whose own Brexit policy is equally divided.
What stocks are active?
Pandora A/S PNDORA, -6.03% shares plunged more than 6%, after Morgan Stanley cut its price target for the Danish jewelry company, and it expects upcoming earnings to disappoint and management to announce a restructuring.
Among the heavyweights, pharmaceutical group Novartis AG NOVN, -1.15%NVS, -0.87% fell 1.3% and banking group HSBC Holdings PLC HSBC, -0.46%HSBA, -1.20% fell over 1%.
Britain’s Burberry PLC BRBY, +0.49% bucked a weaker trend for luxury-goods groups, gaining 1% after Bank of America Merrill Lynch reportedly raised its stock recommendation to neutral from underperform.
Online supermarket Ocado Group PLC OCDO, +1.79% gained almost 2%.
end quote from:
https://www.marketwatch.com/story/european-markets-hit-by-disappointing-china-trade-data-2019-01-14
