Last Monday, European shares declined because of news of weak business activity in the U.S. that boosted economic slowdown worries, which overshadowed the gains in telecom stocks. As a result, investors took their profit from last week’s rebound.
A survey was released that showed that the U.S. services sector barely grew in May. On the other hand, factory orders rose, but they were less than expected. The STOXX 600 index, pan-European, settled at 0.4% after a survey was released.
Chief Strategist at Interactive Brokers, Steve Sosnick, said, “There’s a bit of profit taking after some of the moves we’ve had recently.” “The economic reports that we’ve gotten around the world (signal) a somewhat slowing economy.”
U.S. equities were uplifted by big technology and growth stocks. After eurozone inflation eased, the United States avoided defaulting on its debt, and there is speculation that the Fed could stop raising interest rates this month, whereas the STOXX 600 index was unable to maintain the optimism from Friday’s surge.
There are possibilities that there will be more increases in rates from the central bank in June; the expectations were cemented after the hawkish comments from Bundesbank President Joachim Nagel and European Central Bank (ECB) President Christine Lagarde.
The telecoms came out of their 15-month dip, which was the worst session, and they rebounded by 0.4% after Amazon stated that they were planning to offer low-priced mobile services.
The drugmaker agreed to pay $102.5 million, which settled a lawsuit for suboxone, an opioid addiction treatment. The shares rose to 7.8% of Indivior Plc, which topped the STOXX 600.
Trendyol, an Alibaba-backed rival, paid 1 billion pounds in a bid to Asos, the fashion retailer, which resulted in a 7.1% hike in the retailer’s shares. While the Swedish streaming company Viaplay Group spoke about the weakening business environment and stated it was replacing its CEO, as a result, they reported a record low as their shares plunged by 62%.
Volvo Cars, a Sweden-based company, hiked by 6.9%, which was recorded after they posted their 31% rise in sales in May. After recording the worst monthly performance of the year at the end of May, the STOXX 600 came down by more than 3%, with signs of a global economic slowdown and worries about the U.S. debt ceiling standoff.
According to government data, annual Swiss inflation dipped to 2.2%. On Monday, the Copenhagen Stock Exchange was closed for the Constitution Day holiday.
