European stocks decreased on the last day of the month, in the first quarter, and in the first half of 2021, driven down by bank and car losses. Investors are focusing on Friday’s jobs news, therefore U.S. stock futures are also under pressure. The Stoxx Europe 600 index SXXP, -1.01 percent lost 0.7 percent to 453.09, extending early losses. The index rose roughly 14% in the first half of the year, 6% in the second quarter, and 2% in the month. The German DAX DAX, -1.35 percent and the French CAC 40 PX1, -1.27 percent both dropped 0.8 percent, while the FTSE 100 index UKX, -0.91 percent dropped 0.7 percent.
Stock futures ES00, -0.22 percent YM00, -0.32 percent NQ00, -0.17 percent also pointed to a worse start for Wall Street ahead of an ADP private-sector hiring data on Friday, as the crucial jobs report approaches. After encouraging statistics and investors brushed aside concerns over the spread of the highly contagious COVID-19 delta variant, the S&P 500 SPX, +0.03 percent and Nasdaq Composite COMP, +0.19 percent closed Tuesday’s session in record territory. Moderna MRNA, a pharmaceutical company, said that their COVID-19 vaccination can protect against many variants, including the delta variant, in an in-vitro trial. Gross domestic product (GDP) of the United Kingdom declined 1.6 percent in the first quarter of 2021, compared to an early projection of 1.5 percent. GDP is now 8.8 percent lower than it was pre-pandemic in the fourth quarter of 2019 — down from an original estimate of 8.7 percent. Investors were anticipating a quick estimate of European consumer price inflation in June. In June, German unemployment claims declined more than predicted. The majority of European stocks were down, led by banks, with shares of HSBC HSBC, -1.16 percent HSBA, -1.17 percent, BNP Paribas BNP, -2.09 percent, and Banco Santander SAN, -0.76 percent SAN, -1.53 percent all down about 1%. Automakers were also under pressure, with Porsche Automobil Holding PAH3, -4.96 percent down 2.9 percent and Volkswagen VOW3, -3.33 percent VOW, -3.81 percent down 2%. Travel-related equities also fell, with shares of International Consolidated Airlines IAG -3.51 percent down 1.5 percent and cruise company Carnival CCL -2.65 percent down 2 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 the renewable energy firm, which is owned by Spain’s Acciona SA ANA, -1.72 percent. Acciona’s stock dropped 0.5 percent.
Continue reading
