Investing.com – European stock markets fell on Monday, the last day of September, as investors digested a series of domestic economic releases as well as the mixed performance of major Asian indices.
At 03:05 ET (07:05 GMT), Germany’s stock index fell 0.3%, France’s index fell 0.5%, and the UK’s index fell 0.12%.
Various Asian influences
The tepid start to the week comes after the European benchmark index closed at a new record high on Friday, supported by China’s announcement last week of a raft of stimulus measures aimed at boosting the world’s second-largest economy, which is also a major export exporter. Market for major companies in Europe.
Major Chinese stock indexes posted strong gains on Monday, including the Hong Kong index rising more than 4%, after China’s central bank said late Sunday it would ask banks to cut mortgage interest rates for existing home loans before October 31. – It is the latest in a series of aggressive measures. Stimulus measures designed to support the country’s faltering real estate market.
However, the Japanese index fell almost 5%, as investors took into account the risks of higher interest rates under new Prime Minister Shigeru Ishiba – a long-time critic of the Bank of Japan’s accommodative policies.
In addition, the Japanese index fell by 3.3% month-on-month in August, while it fell by 5.1% year-on-year.
Growth in the UK was revised downwards
Returning to Europe, data released earlier Monday showed growth of 0.5% in the second quarter, slightly below the initial estimate of 0.6% for GDP growth.
Compared to the second quarter of 2023, the economy grew by 0.7%, which is slower than economists’ expectations of a 0.9% increase.
The data is due later in the session and is expected to show that prices in the euro zone’s largest economy are rising below the European Central Bank’s medium-term target of 2%.
The European Central Bank cut interest rates earlier this month, and speculation is growing that the central bank will ease monetary policy again in October as growth slows as inflation slows.
Stellantis (NYSE:) lowers annual guidance
In the corporate sector, Stellantis (EPA:) fell more than 6% after the French-Italian automaker cut its annual guidance, citing deteriorating global industry dynamics and Chinese competition for electric vehicles.
Staying with the automotive sector, the British luxury car maker Aston Martin (LON:) warned of lower annual core earnings and said it no longer expects to achieve positive free cash flow in the first half, citing supply chain disruptions and weakness in China.
Oil prices rise due to tensions in the Middle East
Oil prices rose on Monday amid the potential for wider conflict in the Middle East after Israel intensified its attacks on Iran-backed Hezbollah and armed Houthi groups.
By 03:05 ET, the contract was up 1.2% at $72.44 per barrel, while futures trading (WTI) was up 1.1% at $68.94 per barrel.
Israel said it bombed Houthi targets in Yemen on Sunday, just days after Hezbollah leader Hassan Nasrallah was killed in an escalating conflict in Lebanon.
Both crude oil prices fell last week as concerns about demand increased after fiscal stimulus from China, the world’s second-largest economy and largest oil importer, failed to reassure market confidence.