08/14/2023 – 1:02 pm
Stock markets in Europe closed without a single direction this Monday, the 14th, in the face of concerns about the real estate sector in China and possible impacts on the economic recovery of the Asian country. Investors are also lining up for data on inflation, economic activity, among others, this week.
The European stock market started the day with no single direction, in the wake of concerns about China’s real estate sector, which also weighed on Asian markets. Fears resurfaced after Chinese developer Country Garden announced over the weekend it was suspending yuan-denominated bonds, days after it refused to pay bonds in US dollars.
In a report, Capital Economics analyzes that the ongoing problems in China’s real estate sector should not provoke “a financial crisis, but we expect them to be a drag on the country’s stock market returns over time”.
According to CMC Markets, European stock exchanges even fought for gains and tried to recover part of the last two weeks of losses, however the movement was not enough to firm the indices in the black.
In London, the FTSE closed down 0.23%, at 7,507.15 points, reflecting weakness in basic resources, energy and real estate, with mining and energy shares falling due to concerns about Chinese demand, points out the CMC. Particularly, the energy sector was also pressured by the drop in oil prices in this session. Among the leading roles, Shell (-0.93%), Antofagasta (-0.86%), Glencore (-2.45%) and Rio Tinto (-1.67%) weighed on the British market.
On an empty schedule day, Lazard observes that investors are also lining up for macroeconomic data this week. According to the consultancy, the market should monitor Chinese numbers of industrial production, inflation in the United Kingdom and the euro zone, in addition to the Gross Domestic Product (GDP) of the European bloc.
In Frankfurt, the DAX index closed up 0.46%, at 15,904.25 points; in Paris, the CAC 40 rose 0.12% to 7,348.84 points; and in Milan, the FTSE MIB rose 0.57% to 28,435.49 points. On the other hand, in Madrid, the Ibex 35 index fell by 0.06%, to 9,428.20 points, and, in Lisbon, the PSI 20 fell by 0.16%, to 6,036.84 points. Quotes are preliminary.
*With information from Dow Jones Newswires
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