European stocks fell on Monday, with the energy sector the worst performer as worries about the risk of a global economic slowdown rekindled after data showed a slowdown in manufacturing activity in China, the Eurozone and the US.
On the board, the pan-European STOXX 600 lost 0.1% after continued sign changes. The index posted an impressive rally in July posting its best monthly performance since November 2020, jumping 6.3%.
Manufacturing activity in the US, Europe and Asia continued to slow in July as weakening global demand amid a rally in inflation and disruptions to supply chains due to restrictions in China continue to weigh on the industry.
More specifically, manufacturing activity in the eurozone shrank in July, with factories forced to stockpile unsold goods due to weak demand.
In particular, the S&P manufacturing PMI fell to 49.8 points in July from 52.1 points in June, marginally higher than initial estimates of 49.6 points, but for the first time below the 50 point mark that separates the growth from contraction, from June 2020.
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.
Against this backdrop, the energy sector lost 1.5% after six consecutive bullish sessions against the backdrop of a slump in oil prices.
Separately, Germany’s DAX edged down 0.03% to 13,479.63, France’s CAC 40 lost 0.2% to 6,436.86, while Britain’s FTSE 100 closed down 0.1% to 7,413. .42 units.
In the region, Italy’s FTSE MIB gained 0.1%, while Spain’s IBEX 35 fell 0.9%.
Elsewhere in the day, retail sales in Germany fell 8.8% – the biggest since 1994 – in June.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
