European equities retreat, grounds for concern are multiplying – archyworldys

PARIS (Reuters) – The main European stock markets gave ground at the start of the session on Monday after a series of lower-than-expected Chinese indicators that rekindled fears that the spread of the Delta variant of the coronavirus slowed down the global economic recovery.

To this must be added the geopolitical tensions linked to the seizure of power by the Taliban in Afghanistan and the persistent questions about the evolution of American monetary policy in the weeks and months to come.

In Paris, the CAC 40 lost 0.55% to 6,858.48 points around 07:30 GMT. In London, the FTSE 100 lost 0.71% and in Frankfurt, the Dax fell 0.23%.

The EuroStoxx 50 index is down 0.43%, the FTSEurofirst 300 0.55% and the Stoxx 600 0.34%. The latter had set a record Friday during its tenth consecutive session of increase, an unprecedented series since 2006.

The monthly figures for industrial production, retail sales and investment in China released earlier today are all lower than expected, highlighting the drag on the recovery of the world’s second-largest economy linked in part to the propagation of the Delta variant.

For investors, one of the main economic meetings of the week will be the publication, on Wednesday, of the minutes of the July meeting of the US Federal Reserve, which could provide new information on the future “tapering”, the gradual reduction by the central bank of its bond purchases.

In values, Faurecia jumped 6.09% after the announcement on Saturday of the takeover of German Hella (-1.96%). Berenberg welcomes the operation in a note judging that the French group suffers from an unjustified discount.

On the downside, Lufthansa yields 4.32% after the announcement by the German federal state of its intention to sell up to 5% of the company’s capital in the coming weeks.

Oil stocks suffered from the decline in crude prices for the third consecutive session: TotalEnergies dropped 1.24%, TechnipFMC 2.87% and CGG 2.1%.

Disappointing Chinese indicators are also weighing on the commodities compartment: the mining giant Glencore lost 1.96%, the steelmaker ArcelorMittal 1%.

(Report Marc Angrand, edited by Blandine Hénault)