European stock exchanges closed lower
Monday February 22, 2021 6:57 PM
(ABM FN-Dow Jones) Equity markets in Europe closed lower on Monday, despite a partial recovery during the second half of the trading day. The Stoxx Europe 600 index fell 0.4 per cent to 413.06 points, the German DAX index lost 0.3 per cent at 13950.04 points, the French CAC 40 index lost 0.1 per cent to 5767.44 points, and the British FTSE index fell 0.2 per cent to close at 6612.24 points.
“European stock markets got off to a disappointing start to the week, amid mounting concerns about rising interest rates and what this development is telling us about the economic outlook,” said Michael Hewson, market analyst at CMC Markets. “This led to profit taking today, especially in the US. As the stock market is heading for a loss for the fifth day in a row. “
“Optimism about reopening the economy weighs on stocks that have performed well thanks to the pandemic,” Hewson said, citing losses of Just Eat Takeaway.com and Ocado and technology stocks such as Sage Group and Avast.
Shares related to the travel sector performed well on Monday with earnings from easyJet, Ryanair, Toi and others.
Hewson saw losses in the UK stock markets drop somewhat during the day after Prime Minister Boris Johnson charted the way out of the lockdown. Additionally, oil stocks have a fairly heavy weight in the FTSE 100, which, according to Howson, has also helped contain losses. Several oil inventories found their way up, supported by resilient oil prices. Hewson pointed out that West Texas Intermediate prices are back above $ 60 a barrel, while Brent prices are currently showing the highest daily profit since January of last year. Both BP and Royal Dutch Shell rose sharply on Monday.
On Friday, the price of copper reached its highest level in more than nine years, and rose slightly on Monday.
“One of the (many) current stories in the financial markets at the moment is the spike in commodity prices, as copper, tin, zinc, lead and nickel have risen sharply amid hopes for a global economic recovery and supply challenges.” This is happening at a time when investors are realizing that the reserves are. The Fed really wants high inflation and that the bonds are not really an asset to currently own. “
According to ING, the biggest challenge here is whether the sell-off in the bond markets is done in an orderly manner so that deflationary assets like stocks continue to rise.
The 10-year US interest rate rose 2% to 1.37% on Monday, and the German variable was flat at -0.31%.
On the macroeconomic level, attention has been paid to the Ifo Index, which reflects the German business climate. February saw an unexpected improvement. The industry and commerce composite index rose from 90.3 in January to 92.4 this month. Economists had previously expected the level of 90.1. Partial indicators of the current situation and future development have also improved.
However, unexpectedly positive Ifo data have to be taken into account, according to Carsten Brzeski of ING. According to the economist, they mainly show that German entrepreneurs are watching the financial markets and can see the negative short-term effects of lockdowns and slow vaccinations.
EUR / USD is traded at 1.2149, near the European stock market close.
Commodity stocks such as BHP and Glencore closed 1.5 percent higher on Monday.
Tech stocks were under pressure. STMicroelectronics lost more than 2 percent in Paris, just like ASML in Amsterdam. Infineon lost more than one percent in Frankfurt.
Meal delivery companies Just Eat Takeaway and Delivery Hero lost nearly 4 to 7 percent on Monday, after a number of countries began implementing lightweight mitigation.
Wall Street Ranking
US indices were mostly lower around the European close. The Dow was only able to rise slightly.
ABM Financial News; [email protected]; Redactie: +31 (0) 20 26 28999.