European markets plummeted on the last day of the month, quarter, and first half of 2021, as investors shifted their attention away from optimistic inflation statistics and onto concerns over a contagious COVID-19 disease. The Stoxx Europe 600 index SXXP, -0.47 percent fell 0.4 percent to 454.63 points. In the first half of the year, the index gained roughly 14 percent, 5.8 percent in the second quarter, and 1.8 percent in the month. The German DAX DAX, -0.81 percent and the French CAC 40 PX1, -0.46 percent each lost 0.7 percent and 0.4 percent, respectively, while the FTSE 100 index UKX, -0.35 percent dipped 0.4 percent.
Growing concerns over rising delta variant cases, which make up the majority of U.K. cases and are spreading across multiple countries, have been weighing in recent sessions. Some fear that the spread will stifle the global recovery. Read about how different countries are dealing with Delta variation hotspot arrivals. However, after the S&P 500 SPX, +0.08% and Nasdaq Composite COMP, -0.15% finished Tuesday’s session in record territory due to good data, European equities trimmed losses while U.S. stocks opened relatively flat. The number of people employed in the private sector in the United States climbed by 692,000 in June, above economists’ expectations. According to a flash estimate from Eurostat, consumer prices in Europe fell to 1.9 percent in June from 2 percent in May. The annual surge in inflation was driven by energy prices, which increased by 12.5 percent year over year. In a statement to clients, Willem Sels, chief investment officer, private banking and wealth management at HSBC, warned investors not to become complacent about inflation in the region. By the end of the year, he expects the headline number to reach 2.8 percent before starting to fall. “While oil and other commodities will become less of an inflation driver this year, low inventories of industrial goods mean that goods price inflation will persist until companies replenish their stock, which might take many months,” Sels added. “And, in the services sector, the current pricing pressure we’re all feeling when trying to book a staycation or visit our favorite restaurants will last until later this year, when labor supply catches up with demand.” Banks were among the largest losers in Europe, with HSBC HSBC, -0.12 percent HSBA, -0.65 percent, BNP Paribas BNP, -0.88 percent, and Banco Santander SAN, -1.02 percent SAN, -0.89 percent all down roughly 0.5 percent each. Automakers were also under pressure, with shares of Porsche Automobil Holding PAH3, -4.05 percent, down 3.7 percent, and Volkswagen VOW3, -1.71 percent, down 1.6 percent. Acciona Energia aimed for a market valuation of roughly 8.8 billion euros ($10.47 billion) in its first public offering, which was priced at the lower half of an expected range. The IPO will be priced at EUR26.73 per ordinary share, according to Acciona SA ANA, -0.63 percent, which owns the renewable energy provider. Acciona’s stock dropped 0.7 percent./n
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