European stocks struggled on Monday after their worst weekly showing since February, hit by a growing number of risks including signs of inflation, elevated bond yields, and developer China Evergrande’s financial troubles. The pan-European STOXX 600 index fell 0.5 percent, holding near a two-month low hit in last week’s selloff. Banks, chipmakers, and luxury stocks were the top decliners on fears of a slowdown in global growth, as China, the world’s second largest economy, deals with fresh COVID-19 restrictions, a property sector slowdown, and regulatory clampdowns. French luxury goods makers Kering and LVMH, which draw a major portion of their revenue from the country, fell 1.2 percent and 0.8 percent, respectively. A survey showed investor morale in the euro zone fell to its lowest level since April in October on dimming economic expectations. STOXX 600 has dropped 5 percent from a record high hit in August due to signs of …
Banks, Chipmakers Drag European Stocks Lower on Growth Worries
October 4, 2021
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