(RTTNews) – European stocks closed lower on Monday, extending recent weakness, amid worries about escalating tensions in Eastern Europe.
Worries about inflation and tensions between Russia and Ukraine rendered the mood bearish. Also, with the U.S. market closed today for President’s Day, investors were quite reluctant to make significant moves.
France announced the US and Russia agreed in principle to meet to discuss the Ukrainian crisis. However, Kremlin has stated that there are no concrete plans so far. The White House has warned the meeting would take place only if no invasion happens.
Investors also digested a slew of economic data from the region.
The pan European Stoxx 600 drifted down 1.3%. Germany’s DAX tumbled 2.07%, France’s CAC 40 slid 2.04% and the U.K.’s FTSE 100 declined 0.39%, while Switzerland’s SMI fell 0.98%.
Among other markets in Europe, Austrai, Belgium, Czech Republic, Denmark, Finland, Iceland, Ireland, Netherlands, Poland, Portugal and Spain lost 1 to 4%.
Russia plunged more than 10%, while Greece ended modestly lower and Turkey edged up marginally.
In the UK market, Polymetal International plunged 8.5%. Evraz, Coca-Cola and Scottish Mortgage lost 4.5 to 5.7%.
Ashtead Group, Segro, JD Sports Fashion, Smurfit Kappa Group, BT Group, Aveva Group, Tesco and Rolls-Royce Holdings shed 2 to 3%.
AstraZeneca rallied 4%. Anglo American gained about 1.5% after announcing it has restarted operations at its Grosvenor metallurgical coal mine in Queensland, Australia.
Hargreaves Lansdown, Fresnillo, Sage Group, B&M European Value Retail, Natwest Group, Associated British Foods and Reckitt Benckiser gained 1 to 1.6%.
In the French market, Faurecia ended lower by over 5% despite forecasting higher sales in 2022. Teleperformance also dropped by over 5%. Renault, LO’real, Schneider Electric, Sodexo, ArcelorMittal, Air Liquide, Airbus Group, Safran and LVMH lost 2 to 4%.
In Germany, Continental, BMW, Porsche Automobil, Linde, Deutsche Post, Volkswagen, Allianz, Brenntag, MTU Aero Engines, Infineon Technologies, Merck, Siemens and Daimler shed 2 to 4%.
In economic news, flash survey results from IHS Markit showed Eurozone private sector activity growth accelerated notably in February as COVID-19 containment measures were relaxed.
The composite output index climbed to 55.8 in February from 52.3 in January. The reading was forecast to improve moderately to 52.7. Any reading above 50.0 indicates expansion.
The services Purchasing Managers’ Index rose to 55.8 from 51.1 in the previous month. The expected reading was 52.0. At the same time, the factory PMI came in at 58.4 in February, down from 58.7 a month ago. The score was expected to remain unchanged at 58.7.
France’s private sector expanded at the fastest pace since last June, with momentum gains across services and manufacturing, flash survey results from IHS Markit showed. The flash composite output index rose to an eight-month high of 57.4 in February from 52.7 in January. The score was forecast to advance moderately to 53.1.
At 57.9, the services Purchasing Managers’ Index hit a 49-month high, up from 53.1 in January. The expected reading was 53.6. The manufacturing PMI came in at 57.6 in February versus 55.5 in January. Economists had forecast the index to remain unchanged at 55.5
Germany’s private sector grew at the fastest rate in six months in February, flash survey data from IHS Market showed. The flash composite output index rose unexpectedly to 56.2 in February, up from January’s 53.8. The score was forecast to fall to 53.1.
The services Purchasing Managers’ Index rose to a six-month high to 56.6 in January from 52.2 in the prior month. The score was forecast to climb to 53.6. Meanwhile, the manufacturing PMI came in at 58.5, down from 59.8 a month ago and the economists’ forecast of 59.5.
Germany producer price inflation hit a record high in January, with producer prices increasing 25% year-on-year, following December’s 24.2% rise, data from Destatis showed. This was the highest annual increase since the survey began in 1949. Economists had forecast producer prices to climb 24.2% again.
On a monthly basis, producer price inflation eased to 2.2% from 5% in December. Economists had forecast prices to rise 1.5%.
Meanshile, the UK private sector expanded sharply in February due to the swift rebound in economic conditions after disruptions caused by the Omicron variant at the turn of the year, flash survey results from IHS Markit showed.
The Chartered Institute of Procurement & Supply composite output index rose to an eight-month high of 60.2 in February from 54.2 in January. The score was forecast to rise moderately to 55.0. A reading above 50.0 indicates expansion in the private sector.
The services Purchasing Managers’ Index advanced to 60.8 from 54.1 a month ago. The expected reading was 55.5. At the same time, the factory PMI held steady at 57.3 in February. The reading was seen at 57.2.
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