European stocks slide on Evergrande woes and weak German corporate morale By Reuters

© Reuters. The DAX chart of the German stock index is pictured on the stock exchange in Frankfurt, Germany on September 23, 2021. REUTERS / Staff

By Sruthi Shankar and Shreyashi Sanyal

(Reuters) – European stocks fell on Friday as concerns over struggling property developer China Evergrande and weak German business confidence data prompted investors to post profits after a midweek rally.

European sportswear manufacturers Adidas (OTC :), Puma and JD (NASDAQ 🙂 Sports fell around 3% each after their US rival Nike (NYSE 🙂 has reduced its sales forecast for fiscal 2022 and forecast delays during the holiday shopping season due to a tight supply chain.

Retail inventories were the most down in Europe, down 1.7%, while the region as a whole fell 0.9%. But a three-day rally pushed the index up 0.3% for the week.

“Equities rallied to take an early break this morning in the face of the likely Evergrande default,” said Sébastien Galy, senior macro strategist at Nordea Asset Management.

Investor concerns over Evergrande resurfaced as a deadline to pay $ 83.5 million in bond interest was passed without any remarks from the company, bringing it closer to a potential default.

Meanwhile, an Ifo Institute survey showed German business morale in September fell for a third consecutive month, hit by supply chain issues causing a “bottleneck recession” for manufacturers in Europe’s largest economy.

fell 0.7%, ahead of the weekend when the country will vote to elect German Chancellor Angela Merkel’s successor.

The latest polls have shown the Social Democrats clinging to a narrow lead over the conservative CDU / CSU alliance, while the Greens lag behind. [nS8N2OY01Q]

“Part of the reluctance in European markets could also be blamed on the German election, which promises to be the most interesting in a while,” said Chris Beauchamp, chief market analyst at IG.

“Markets are facing a change of direction in Germany unlike anything seen in the past decade or more, and the end of Merkel’s tenure promises to be a turning point for the EU and global investors . ”

The benchmark STOXX 600 is poised to end September in the red after seven straight months of gains, as rising energy prices and supply chain bottlenecks fueled fears of inflation, while major central banks plan to cut stimulus measures in the pandemic era.

However, European Central Bank President Christine Lagarde said in an interview broadcast on CNBC that many of the factors behind a recent spike in inflation in the euro area are temporary and could subside next year. .

UK drugmaker AstraZeneca (NASDAQ 🙂 rose 2.0% after the company said its cancer drug Lynparza hit its primary target in an advanced stage trial.

Italian public services Enel (MI 🙂 and Eni edged up after the government set aside more than 3 billion euros ($ 3.5 billion) to curb a sharp rise in retail energy bills.

Disclaimer: Fusion media would like to remind you that the data contained in this site is not necessarily real time or accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by the exchanges but rather by market makers. Therefore, the prices may not be exact and may differ from the actual market price, which means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media assumes no responsibility for any business losses that you may incur as a result of the use of such data.

Fusion media or anyone involved with Fusion Media will accept no responsibility for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy / sell signals contained on this website. Please be fully informed about the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.

About William G.

Check Also

The Evolution of Cryptocurrencies and Digital Assets

Countries and governments are scrambling to accommodate these assets and institutions, while more and more …