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Markets

European stocks drop at open

  • London's benchmark FTSE 100 index shed 0.6 percent to 7,109.95 points, compared with Wednesday's closing level
Published August 26, 2021

LONDON: Europe's major stock markets dipped in opening deals on Thursday, mirroring Asia on growing fears over an end to central bank largesse.

London's benchmark FTSE 100 index shed 0.6 percent to 7,109.95 points, compared with Wednesday's closing level.

In the eurozone, Frankfurt's DAX 30 lost 0.8 percent to 15,739.48 points and the Paris CAC 40 declined 0.6 percent to 6,638.19.

"A tepid opening to trading has seen investors choosing to react to further weakness in Asian markets, as opposed to the further strength of Wall Street," noted Interactive Investor analyst Richard Hunter.

Stocks and oil extend gains

Asian markets fell after South Korea became one of the first major economies to start lifting interest rates since they were cut to record lows last year to battle the coronavirus impact.

Sentiment also remains blighted by the prospect of an end to Federal Reserve's emergency financial support.

Traders are also keeping a keen eye on China after it rattled world markets in recent weeks with a wave of regulations aimed at winding in private firms -- particularly in the tech sector -- it considered to have become too powerful and posed security risks.

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