Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Indexes
  3. Switzerland
  4. Switzerland
  5. Euro Stoxx 50
  6. News
  7. Summary


SummaryMost relevantAll NewsOther languagesNews of the index componentsMarketScreener Strategies

European shares fall as economic growth concerns derail rally

01/07/2019 | 12:31pm EDT
The German share price index DAX graph at the stock exchange in Frankfurt

LONDON (Reuters) - European shares fell back on Monday, after rebounding at the end of last week, as lingering worries about the euro zone economy, Brexit and the U.S. government shutdown offset hopes for a truce between Washington and Beijing over trade.

The pan-European STOXX 600 <.STOXX> index closed down 0.15 percent, erasing some of Friday's stellar gains after strong U.S. jobs data and dovish comments from the Federal Reserve chief.

Optimism about easing friction between the United States and China had also lifted the mood, helping the index to its biggest daily gain since June 2016.

The swift swing into negative territory on Monday morning illustrated the fragility of the gains as other worries returned to the fore.

The biggest gainers in Friday's strong rally were some of Monday's laggards, with healthcare <.SXDP> and food and beverage stocks falling 0.8 and 1.1 percent respectively. The weaker U.S. dollar also weighed on those companies with large international revenues.

Blowout U.S. data and Fed comments had "calmed some nerves" and provided some psychological support to the market, said Lars Kreckel, global equity strategist at Legal & General Investment Management.

On Friday, Fed chair Jerome Powell said the U.S. central bank was not on a preset path of interest rate hikes and that it would be sensitive to the downside risks markets were pricing in.

"We're not seeing the overheating of the U.S. economy that we were worried about," said Kreckel.

Still, European equities remain out of favour, particularly after business surveys last week pointed to slower growth.

On Friday, Bank of America Merrill Lynch's "Bull & Bear" gauge of market sentiment had fallen to 1.8, a level the U.S. bank's strategists described as "extreme bear" territory that had triggered a "buy" signal for equities.

Sectors sensitive to the trade tensions were among the few gainers on Monday, with basic resources stocks <.SXPP> up 1 percent and technology up 1.5 percent.

Chipmakers were also recovering from heavy losses last week after Apple's shock revenue warning.

AMS which supplies the iPhone maker, rose 9.6 percent to the top of the STOXX 600 after announcing a partnership with Chinese software maker Face++ to produce new 3D facial recognition features for smartphones.

"Face++ is considered a very solid software platform for 3D sensing and for hardware company like AMS the bottleneck is partly software and the partnership helps them to close this gap,” said Veysel Taze, analyst at ODDO BHF.

AMS shares lost almost a quarter of their value on Thursday.

Broker research moved other stocks, with Dutch payments firm Adyen rising 6.2 percent after BAML upgraded it, while Wirecard was up 2.4 percent after BAML also backed it.

On the downside, Centrica fell 4.4 percent after a Jefferies downgrade.

A JP Morgan downgrade pushed tyre makers and auto parts makers Pirelli, Michelin and Gestamp lower, adding further gloom to the industry knocked by regulation and slowing Chinese sales.

The bank said it reckons the European autos are unlikely to re-rate in the first half of the year.

Cigarette makers British American Tobacco and Imperial Brands fell 4.2 percent and 5 percent respectively following a downbeat note on the sector from Cowen analysts, who downgraded both stocks to "market perform".

(Reporting by Josephine Mason, additional reporting by Danilo Masoni Editing by Helen Reid/Keith Weir/Susan Fenton)

© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
ADYEN N.V. 0.79% 1931.6 Real-time Quote.0.51%
AMS AG -0.08% 17.72 Delayed Quote.-8.47%
BANK OF AMERICA CORPORATION 2.50% 39.75 Delayed Quote.31.14%
BRITISH AMERICAN TOBACCO PLC -0.43% 2799.5 Delayed Quote.3.82%
CENTRICA PLC -0.43% 51.24 Delayed Quote.10.43%
EURO / BRITISH POUND (EUR/GBP) 0.14% 0.85666 Delayed Quote.-3.84%
EURO / US DOLLAR (EUR/USD) -0.16% 1.1891 Delayed Quote.-2.48%
EURO STOXX 50 -0.02% 4111.67 Delayed Quote.15.75%
EXTREME CO.,LTD. -2.22% 1059 End-of-day quote.-8.55%
GESTAMP AUTOMOCIÓN, S.A. -1.67% 4.486 Delayed Quote.15.61%
IMPERIAL BRANDS PLC 0.53% 1598.5 Delayed Quote.3.65%
MICHELIN (CGDE) -1.85% 135.1 Real-time Quote.31.11%
PIRELLI & C. S.P.A. -0.98% 5.074 Delayed Quote.15.50%
STOXX EUROPE 600 0.04% 455.4 Delayed Quote.14.08%
WIRECARD AG -0.92% 0.3977 Delayed Quote.28.61%
All news about EURO STOXX 50
03:12aEUROPE : European shares rise as recovery optimism lifts banks, miners
02:06aStocks recover from 4-week lows as focus switches back to post-pandemic growt..
06/21EURO STOXX 50 Index Ends 0.71% Higher at 4112.33 -- Data Talk
06/21EUROPE : European stocks end higher as Lagarde talks up economic growth
06/21STOXX EUROPE 600  : European Bourses Reverse Lower Opening, Choppily Higher Midd..
06/18EURO STOXX 50 Index Ends the Week 1.05% Lower at 4083.37 -- Data Talk
06/18Eurostoxx 50 : European shares deepen losses after hawkish Fed comments
06/18STOXX EUROPE 600  : European Bourses Lower Midday; Bank, Oil Shares Sink
06/17EURO STOXX 50 Index Ends 0.15% Higher at 4158.14 -- Data Talk
06/17Eurostoxx 50 : European shares snap 9-day winning streak on Fed jitters
More news
News of the index components EURO STOXX 50
09:07aDAIMLER  : 2021 Styrian Grand Prix - Preview
09:01aPERNOD RICARD  : French drinks firm Pernod Ricard confident about Asia prospects
09:00aPhilips announces first patient enrollment in DEFINE GPS global multicenter s..
08:55aLINDE PLC : Release of a capital market information
08:55aDGAP-CMS  : Linde plc: Release of a capital market information
08:36aESSILORLUXOTTICA  : Goldman Sachs reaffirms its Buy rating
08:27aVOLKSWAGEN  : Bentley Motors today certified for delivery its first car from a n..
More news
Duration : Period :
Euro Stoxx 50 Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends EURO STOXX 50
Short TermMid-TermLong Term
Top / Flop EURO STOXX 50
LINDE PLC 288.33 Delayed Quote.2.24%
AIR LIQUIDE 150.4 Real-time Quote.1.48%
KONE OYJ 70.09 Real-time Estimate Quote.1.34%
FLUTTER ENTERTAINMENT PLC 160.8 Real-time Quote.1.01%
CRH PLC 42.97 Real-time Quote.0.99%
AXA 21.64 Real-time Quote.-0.85%
ESSILORLUXOTTICA 149.04 Real-time Quote.-0.90%
BAYER AG 51.375 Real-time Estimate Quote.-1.56%
VOLKSWAGEN AG 222.725 Real-time Estimate Quote.-1.73%
PROSUS N.V. 82.3 Real-time Quote.-2.71%
Heatmap :