Stoxx Europe 600 ends lower as banks, tech weigh

European stocks closed lower Monday, with a decline shares of technology shares and banks overshadowing gains in the oil-and-gas sector.

How are markets performing?

The pan-European Stoxx Europe 600

SXXP, -0.16%

fell 0.2% to 363.50, after closing down 0.3% last week. A weekly gain of 3.3% was the best since December 2016, according to Dow Jones Market Data.

Leading decliners, the FTSE MIB Italy index

I945, -0.56%

 fell 0.6% to 19,281.03. Germany’s DAX 30

DAX, -0.21%

closed down 0.2% at 11,494.96, while France’s CAC 40

PX1, -0.01%

ended the session virtually unchanged at 5,101.39.

Meanwhile, the U.K.’s FTSE 100

UKX, +0.14%

 rose 0.1% at 7,103.84.

The euro

EURUSD, +0.1668%

 was buying $1.1374, little changed from late Friday, while the British pound

GBPUSD, +0.6170%

bought $1.3010 from a level of $1.2966, rising after reports of a Brexit breakthrough deal.

What’s driving the market?

Investors zeroed in on signs of fresh trade tensions. In a speech Monday, Chinese President Xi Jinping pushed an image of his country as an open market and willing importer, but hopes for a trade deal with the U.S. were dashed after White House Economic Advisor Larry Kudlow threw cold water on that idea on Friday.

Meanwhile, fresh data show signs that tensions could be taking a toll as growth in China’s service sector slipped to a 13-month low in October. Asian stocks finished mostly weaker.

Read: Evidence that U.S.-China trade talks are the biggest catalyst for the stock market

Focus will also fall on U.S. midterms, where polling suggests Republicans could lose the house to the Democrats, but keep power in the Senate. The outcome of a two-day Federal Reserve meeting later in the week will also capture attention.

Read: Trump says he’s focused on Senate as potential loss of House looms

Closer to home, euro-area finance ministers were meeting in Brussels on Monday to discuss Italy, after that country’s budget was rejected by officials two weeks ago.

What stocks are active?

Banks slipped some after the release of a European bank stress test late last week, with Italian banks topping the poor performers list. Barclays PLC

BARC, -0.47%

BCS, -0.33%

saw modest losses, down 0.5%, and Lloyds Banking Group PLC

LLOY, -1.55%

LLOY, -1.55%

 fell 1.6% after poor performances on those tests. Banco BPM SpA

BAMI, -2.14%

another poor performer, fell 2.1%.

Shares of Total SA

FP, +2.29%

TOT, +2.04%

 rose 2.3% the French oil giant said that it has signed a memorandum of understanding with Sempra Energy

SRE, +3.23%

 to develop North American liquefied-natural-gas, or LNG, export projects. Shares of Sempra were gaining more than 3% in New York.

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