AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)
Markets

European stocks sink after weak business surveys

Market participants are still unconvinced that a trade deal between the two countries is likely anytime soon.
Published September 23, 2019
  • Market participants are still unconvinced that a trade deal between the two countries is likely anytime soon.
  • Wall Street had fallen, however, on Friday after a Chinese agriculture delegation canceled a planned visit to US farm states.

Germany's main share index fell over 1pc on Monday, leading European markets lower after business activity readings from across the euro zone suggested growth had ground to a halt.

Surveys showed growth in services and manufacturing in the euro zone, Germany and France had all stalled in September, fanning concerns of a slide towards recession and suggesting further support for the economy is required.

Euro zone stocks slipped 1.1pc, while Germany's DAX index tumbled 1.4pc as the latest survey of purchasing managers showed its manufacturing sector sinking deeper into recession.

Banks were among the worst hit, with the eurozone banking index slumping 2.6pc, including a more than 5pc fall for Germany's Commerzbank.

The pan-European STOXX 600 index fell nearly 1pc.

"A sense of caution is spreading across the board here and is putting pressure on European markets and this may well continue," said IG Markets analyst Chris Beauchamp

Investors also remained worried by mixed signals from US-China trade talks.

Over the weekend, the US Trade Representative's office issued a brief statement describing the two days of talks with China as "productive."

Wall Street had fallen, however, on Friday after a Chinese agriculture delegation canceled a planned visit to US farm states.

Market participants are still unconvinced that a trade deal between the two countries is likely anytime soon.

"What we'd like to see is concrete progress and that is the thing we're lacking," Beauchamp said.

Early market action showed investors again turning to defensive sectors such as utilities and food and beverage, which were among the few gainers across the main European sub-sectors.

The travel and leisure sector gained 0.3pc with a number of tour operators and airlines gaining from expectations their businesses will benefit from the collapse of British rival Thomas Cook.

Shares of TUI jumped 6.6pc, the most on the STOXX 600, while EasyJet and Ryanair Holdings were close behind.

Comments

Comments are closed.