Major European Markets Close Weak

The major European markets closed weak on Monday, weighed down by concerns about rising inflation, a surge in coronavirus cases in Asia and mixed economic data from China.

In the U.K., some coronavirus-induced restrictions have been relaxed. However, Prime Minister Boris Johnson has warned that the spread of the new Covid-19 variant could threaten further easing in end July.

Taiwan has imposed strict social curbs to stem its worst virus outbreak. The Japanese government has enhanced its response to tackle the fourth wave of coronavirus infections with expanded and extended states of emergency in more areas, and in India, several states have imposed strict restrictions on movements.

Investors also looked ahead to the minutes from the Federal Open Market Committee’s latest meeting, due out Wednesday, for any discussion about accelerating price pressures, and clues about the central bank’s plan with regard to asset purchases.

The pan European Stoxx 600 edged down 0.05%. The U.K.’s FTSE 100 index ended lower by 0.15%, Germany’s DAX declined 0.13% and France’s CAC 40 shed 0.28%, while Switzerland’s SMI moved up 0.13%.

Among other markets in Europe, Greece, Ireland and Sweden closed weak. Austria, Belgium, Czech Republic, Denmark, Iceland, Norway, Poland, Portugal and Turkey closed higher, while Finland, Netherlands, Russia and Spain ended flat.

In the UK market, Rolls-Royce Holdings and Antofagasta both shed more than 4%. Whitbread, IAG, Weir Group, Informa, Renishaw, Smiths Group, Intercontinental Hotels, Standard Chartered and Standard Life lost 1 to 3%.

Ryanair Holdings shares shed more than 2%, after the company reported a record annual loss.

On the other hand, Fresnillo, Polymetal International, BT Group, Rio Tinto, Sainsbury (J), Evraz and BHP Group gained 1 to 3%.

In France, Sodexo declined sharply following a rating downgrade. Saint Gobain shares drifted lower after the French building materials group agreed to buy Romanian group Duraziv, specialized in the production of adhesives and other construction chemicals solutions.

Airbus Group, Veolia, Safran, Vinci, Air Liquide and Accor also ended notably lower, while ArcelorMittal, Carrefour, Danone, Orange and Sanofi ended stronger by 1 to 1.5%.

In the German market, MTU Aero Engines, Siemens and Lufthansa closed with sharp losses.

SAP, Infineon Technologies and Deutsche Bank also ended weak, albeit with less pronounced losses.

Bayer, which tumbled in early trades after the company lost its second appeal of the three jury verdicts finding that the company’s Roundup weed killer causes cancer, recovered well as the session progressed and trimmed its loss to just about 0.5%.

Adidas, Deutsche Telekom, BMW, Volkswagen, Deutsche Wohnen, Fresenius and Merck closed with sharp to moderate gains.

In economic news, UK house prices rose to a new all-time high in May as demand continued to massively exceed supply, property website Rightmove said on Monday.

The average price of property coming to market jumped GBP 5,767 to a record GBP 333,564 in May. House prices increased 1.8% month-on-month, following a 2.1% rise in April. The annual growth in prices accelerated to 6.7% from 4.9% in the previous month.

China’s industrial output rose 9.8% year-on-year in April, matching expectations, while retail sales increased 17.7%, falling short of estimates of 24.9%, separate reports released earlier in the day showed.

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