Europe in decline. Investors focus on economic data and elections
Major European indices are trading in negative territory this Tuesday, ahead of June inflation and unemployment figures in the eurozone.
Meanwhile, the chances of more volatility are growing ahead of French citizens heading to the polls for the second round of legislative elections. The UK also holds elections on Thursday, but major indices have been contained, with the FTSE 100 remaining close to record highs.
The pan-European Stoxx 600 index lost 0.74% to 509.23 points, with the mining, retail and auto sectors falling by more than 1%. On the other hand, oil and gas was the only one continuing to rise, rising very slightly (0.04%).
Among the major moves, Sodexo lost 5.08% after reporting fiscal third-quarter revenue that missed analysts’ estimates. HelloFresh jumped 15.63% after JPMorgan revealed that the latest data points to a stabilization in the U.S. business.
“The strong macroeconomic situation should help markets balance political risks with positive fundamentals,” Florian Elbow, a macroeconomic analyst at Lombard Odier Investment Managers, told Bloomberg.
“I expect volatility to increase again in bonds – as this election requires investors to balance complex financial elements, which should have a fundamental impact on bonds before stocks,” he added.
Among the major indices in Western Europe, the German DAX fell 0.75%, the French CAC 40 fell 0.97%, the Italian FTSEMIB fell 0.73%, the British FTSE 100 fell 0.67% and the Spanish IBEX 35 fell 1.41%. In Amsterdam, the AEX fell 0.72%.
