BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks closed lower on Monday as a lack of significant triggers, and rising tensions in the Middle East and uncertainty over the outcome of the upcoming U.S. presidential election rendered the mood cautious.
The pan European Stoxx 600 dropped 0.66%. The U.K.'s FTSE 100 ended down 0.48%, while Germany's DAX and France's CAC 40 lost 1% and 1.01%, respectively. Switzerland's SMI closed down 0.53%.
Among other markets in Europe, Austria, Belgium, Finland, Greece, Ireland, Netherlands, Poland, Portugal, Spain, Sweden and Turkiye closed weak.
Iceland, Norway and Russia ended higher, while Denmark closed flat.
In the UK market, Intertek Group ended nearly 4% down. Entain, Easyjet, Prudential, Pershing Square Holdings and Airtel Africa closed down 2.3 to 2.7%. Spirax Group, DCC, Frasers Group, Admiral Group, Persimmon, Convatec Group, Weir Group, IMI and Taylor Wimpey also ended notably lower.
Fresnillo rallied 6.3%. Smith (DS) gained about 2.4%. BP, Endeavour Mining and Reckitt Benckiser advanced 1 to 1.3%.
In the German market, Sartorius tumbled nearly 5%. Munich RE ended lower by about 3% after Jefferies cut its rating on the stock.
Vonovia, Infineon, Adidas, Beiersdorf, Merck, Hannover Rueck, Commerzbank, Brenntag, Deutsche Telekom, Qiagen, Henkel and Bayer lost 1 to 3%.
Fresenius Medical Care climbed nearly 4%. Fresenius, Puma, Rheinmetall and Porsche posted moderate gains.
In the French market, Eurofins Scientific ended down 4.7%. L'Oreal, STMicroElectronics, Kering, Stellantis, LVMH, Michelin, Capgemini, Vinci, Unibail Rodamco, ArcelorMittal, Pernod Ricard, Teleperformance, Edenred, Veolia, Bouygues, Hermes International, Publicis Groupe and AXA closed lower by 1 to 2.5%.
In economic news, Germany's producer prices declined at a faster pace in September due to the sharp fall in energy prices, data from Destatis showed. Producer prices dropped 1.4% on a yearly basis, following a 0.8% fall in August and July.
UK house prices increased at a below seasonal average pace in October due to the rise in buyer choice and increasing seller competition, property website Rightmove said. House prices grew 0.3% month-on-month in October, which was much lower than the average seasonal 1.3% increase at this time of year. Prices had increased 0.8% in September.
Eurozone inflation rates continue to fall and growth in the single currency economy remains sluggish, thus allowing for a gradual reduction in interest rates, European Central Bank Governing Council member Martins Kazaks said today.
The ECB has lowered interest rates thrice this year, the latest being the 25 basis points cut this month, and is widely expected to announce another reduction in December as policymakers grow increasingly worried over the euro area growth.
Household consumption in the euro area has so far been weaker than expected and is one of the main reasons for the sluggish economy, Kazaks, who is the chief of the Bank of Latvia, said in a blog. 'Risks to growth remain on the downside,' Kazaks said. 'If the recovery is delayed, this could lead to layoffs (as it becomes too expensive to keep workers), risking inflation to be driven significantly below target.'
Despite this risk, the ECB continues to look for a 'soft landing' without a rapid rise in unemployment and recession, Kazaks said, echoing remarks made by ECB President Christine Lagarde last week.
The European Central Bank could cut interest rates further if inflation continues to slow and the economy remains sluggish, Governing Council member Gediminas Simkus said today, but he refrained from predicting the December move.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
