European Stocks Strengthened Their Positions on Monday
European stocks were slightly higher on Monday morning, looking to recover after recording their worst week in several months. The pan-European Stoxx 600 gained 0.2% by mid-morning, having trimmed some of its earlier gains. Retail stocks advanced 1.5% while utilities declined 1.3%.
In the U.S., stock futures were higher in early premarket trading following a hard week on Wall Street. Investors are waiting for more information about the Federal Reserve’s plans regarding its monetary stimulus.
European stocks are coming off their sharpest worst weekly decline since February, as traders monitored issues such as global monetary policy, the delta Covid variant as well as China’s tech crackdown.
On the data front, the economy of the euro zone lost some momentum this month but remains on course for strong third-quarter growth. IHS Markit’s flash composite PMI for the euro zone fell to its lowest level to 59.5 in August.
In the matter of individual share price movement, the British supermarket chain Sainburys jumped more than 11%. Reports of takeover interest from private equity firms helped to boost its shares.
At the bottom of the European blue chip index, Cembra Money Bank dropped more than 25% after terminating a credit card partnership with compatriot retailer Migros.
Stocks in Asia-Pacific
Stocks in Asia-Pacific also rose on Monday. Hong Kong’s Hang Seng index gained 1.05% to end its trading day at 25,109.59. The shares of the Chinese tech giant Tencent rose nearly 2% while Hong Kong Exchanges and Clearing gained 5.66%.
Monday’s gains for Hong Kong’s Hang Seng index came after heavy losses last week. The highly contagious delta Covid variant affected investor sentiment. Investors also monitored any news regarding the Federal Reserve.
The index fell more than 20% below its mid-February high. Regulatory uncertainty in the world’s second-largest economy clouded the outlook for Chinese technology companies.
Mainland Chinese stocks also rose on Monday. The Shanghai composite added 1.45% to 3,477.13. The Shenzhen component advanced 1.981% to 14,535.88.
In Japan, the Nikkei 225 gained 1.78% to finish its trading day at 27,494.24. The Topix index advanced 1.83% to close at 1,915.14.
South Korea’s Kospi added 0.97% to 3,090.21. But shares of LG Chem dropped 11.14% after General Motors said Friday it was expanding its recall of Chevrolet Bolt EVs. The company found manufacturing defects in certain battery cells produced at LG’s manufacturing facilities.
In Australia, the S&P/ASX 200 gained 0.39% to 7,489.90.
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