Losses for a second day in the euro markets – ‘Varidi’ the technology at -2%

LAST UPDATE: 12.40

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. The stock moves up to +3.7%. 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. Siemens Gamesa announced expanded net sales for the third quarter of the fiscal year amid increased costs and supply chain issues.

End, Moeller-Maersk upgraded estimates as freight rates continue to rise amid supply chain woes.

In this climate, the pan-European index Stoxx 600 fell 0.6% to 435 points, with the tech sector shedding 2.1% the biggest losers, while telecoms shares added 0.6%.

In the individual boards, the German DAX falls by 0.7% to 13,385 units, the French CAC 40 slips by 0.53% to 6,400 units, while the British FTSE 100 fighting for the positive sign at 7,417 units.

In the periphery, the Italian FTSE MIB the Spanish also loses 0.79% at 22,250 units IBEX 35 notes small gains of 0.12% at 8,095 points.

In the individual shares, at the top of the Stoxx 600, Austria’s Raiffeisen Bank International jumped 5.5% after its first-half net profit rose. The financial institution announced that its Russian and Belorussian operations posted the biggest profits among its subsidiaries in the first half of the year, despite the Austrian bank considering a withdrawal from the region.

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.