European Stocks Losing Ground After Long Winning Streak

European stocks are exhibiting weakness Monday afternoon amid rising worries about the spread of the delta variant of the coronavirus in several countries.

Data showing substantial declines in China’s industrial production and retail sales in the month of July, and geopolitical concerns following the collapse of the Afghanistan government also appear to be weighing on sentiment.

The pan European Stoxx 600 is declining by about 0.5%. The U.K.’s FTSE 100 is sliding 1.07%, Germany’s DAX is down 0.42% and France’s CAC 40 is tumbling 0.8%.

In the German market, Lufthansa is down nearly 4%, Adidas is lower by about 2% and Volkswagen is trailing its previous close by about 1.5% BMW, Daimler, Siemens and Deutsche Post are also notably lower.

In France, Kering is down more than 3%, Technip and Renault are lower by 2.5% and 2.2%, respectively. L’Oreal, ArcelorMittal, Safran, LVMH, Hermes International and Air France-KLM are down 1 to 2%.

Shares of insurance company Axa are down by about 0.4%. The company has announced the sale of its operations in Singapore to HSBC for $575 million.

Faurecia is surging up nearly 6% after the company won the bid to acquire a majority stake in German automotive lighting group Hella, trumping rival bidders and creating the world’s seventh-largest player. Faurecia is set to buy a 60% stake in Hella from the founding Hueck family through a mixture of cash and stock, the company said in a statement on Saturday. The Hueck family will take up to 9 percent of the combined company.

In the British market, Bruberry Group, Glencore, Anglo American Plc, Rio Tinto, Weir Group, JD Sports Fashion, Antofagasta, Royal Dutch Shell, BHP Group, BP, Prudential and Everaz are down 2 to 3.4%.

Coca Cola HBC has advanced by 1.3%. LSE, Ocado Group and Severn Trent are up with modest gains.

China’s industrial production growth slowed to 6.4% in July from 8.3% a month ago, data from the National Bureau of Statistics revealed Monday. Output was expected to gain 7.8%.

Retail sales in China grew at a slower pace of 8.5% on a yearly basis, following a 12.1% rise in June. This was also weaker than the economists’ forecast of 11.5%.

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