Losses for a second day in the Euro markets – At 0.7% Stoxx 600

Euro markets remain in negative territory for a second day in a row, tuned in by investors’ cautious appetite for risk as they try to weigh whether July’s rally can sustain its momentum.

The energy sector is the negative protagonist of the days as concerns about the risk of a global economic slowdown rekindled after data showed a decline in manufacturing activity in China, the Eurozone and the US.

More specifically, manufacturing activity in the eurozone shrank in July, with factories forced to stockpile unsold goods due to weak demand. The S&P manufacturing PMI fell to 49.8 points in July from 52.1 points in June.

It was preceded by data from China which showed that factory activity unexpectedly slowed in July. At the same time, two separate reports on the path of US manufacturing showed further contraction in activity to a two-year low in July.

The focus is also on the geopolitical tensions, which are rekindling in the Far East because of it visit of the Speaker of the American House of Representatives Nancy Pelosi to Taiwan. Local media reports citing unnamed sources said Pelosi will make her visit to Taiwan. Beijing warned that its military “will not sit idly by” and will “defend China’s sovereignty and territorial integrity” with the stock market in mainland China to record significant lossesmore than 2%.

Back in Europe, the barrage of corporate results continues. BP Plc announced that its profits increased further in the second quarter of the year, and increased both the dividend and share buybacks. On the same wavelength as the Man Group which achieved a significant increase in pre-tax profits for 2021 and emphasized that it enters the second half with high performance prospects and a good level of customer engagement.

In addition, Italy’s leading insurer, Assicurazioni Generali, announced the profits of the first half of the year which exceeded estimates despite the difficult macroeconomic scenario, and stressed that this week it will launch its first stock market in 15 years.

In this climate, the pan-European index Stoxx 600 fell 0.7% to 434 points, with the basic resources sector losing 1.8% recording the biggest losses.

In the individual boards, the German DAX falls by 0.9% to 13,360 units, the French CAC 40 the British one slips by 0.6% to 6,400 units FTSE 100 it is at -0.3% at 7,390 points.

In the periphery, the Italian FTSE MIB the Spanish also loses 0.76% at 22,260 points IBEX 35 shows losses of 0.37% at 8,055 points.

In the individual sharesat the top of the Stoxx 600, Austria’s Raiffeisen Bank International jumped 5.5% after its first-half net profit rose.

At the bottom, the stock of the British Travis Perkins which is falling more than 10%, after the announcement of its results which showed a decrease in profits in the first half.