Staff of Reuters 3 minutes Read (Click LIVE/ or type LIVE/ in a news window for a Reuters live blog on U.S., UK, and European financial markets.) * Auto stocks are down 1%* German industrial orders are down in May* BP and Shell are up as OPEC+ discussions are canceled* Alstom is down on a bleak outlook. (Adds a comment and changes the prices) Reuters, July 6 – After three days of gains, European equities fell on Tuesday, as gloomy trade in Asia and an unexpected decrease in German industrial orders outweighed a rise in commodities stocks. The STOXX 600 index declined 0.1 percent throughout Europe, with the autos and components index losing the most ground. Since hitting 2015 highs in early June, concerns over supply chain bottlenecks have impacted on the index. Orders for German-made goods fell sharply in May for the first time since the first lockout in 2020, owing to decreased demand from nations outside the euro zone. Later in the day, German investor sentiment data for July and euro zone retail sales data for May will be released. The oil and gas sector surged 0.5 percent after OPEC+ meetings were canceled, raising concerns that supplies may tighten even more. BP and Royal Dutch Shell, both listed in the United Kingdom, gained over 1% each. On the back of increased metal prices, miners gained 0.3 percent. “The impact of rising oil prices is probably transient,” said Sebastien Galy, senior macro strategist at Nordea Asset Management. “Both parties will likely find some deals in a few short weeks.” “What matters more is how quickly the Fed transitions from risk management to modest tightening, which will most likely begin with mortgages.” Investors will be looking for clues on whether the US Federal Reserve will draw back its big stimulus program when the minutes of its most recent policy meeting are released on Wednesday. The STOXX 600 index has gained for the sixth month in a row, owing to a solid resurgence in euro zone corporate activity and confidence about a complete reopening of the British economy later this month. Alstom, a French train manufacturer, dropped 5.7 percent to the bottom of the STOXX 600 index after forecasting negative free cash flow for the fiscal year. Ocado, a British online grocer and technology company, jumped 2.1 percent after reporting a 20% increase in retail revenue in the first half of the year and announcing a new partnership to expand supermarket chain Alcampo’s online business in Spain. Sainsbury’s gained 0.4 percent after reporting first-quarter sales that exceeded estimates. Sruthi Shankar contributed reporting from Bengaluru, and Shounak Dasgupta edited the piece./n
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