European Markets ended Monday’s session mostly on mixed notes, as investors digested the outcome of the German elections.
Looking at the European currency, the euro tumbled by 0.90% against the greenback to trade at 1.1844 at 17:00 GMT. On the other hand, the single currency lost against the safe-haven Japanese Yen to trade at 132.13 at 17:00 GMT. Moreover, The EUR also dropped by more than 1% against the Swiss Franc to trade at 1.1446 at 17:00 GMT.
German Angela Merkel was elected to her fourth term in office on Sunday. However, far-right Nationalist Alternative for Germany (AfD) won parliamentary seats for the first time sent jitters throughout markets all over Europe. The AfD is an anti-immigration and Anti-Euro political party that advocates for the abolition of the Euro.
European leading benchmark Stoxx 600 advanced by 0.18% in Monday’s session to trade at 383.90 at the close. As gains generated in the Energy, Utility and Healthcare sectors led to higher share prices.
Looking at individual equities in the Stoxx600, Tullow Oil share price jumped by 7% after the oil producer said that it would continue drill in various oilfields in Ghana ahead of the resolution of border disputes.
On the other hand, Swedish construction company NCC tumbled by 8% after the company said that their expected third-quarter operating profit will be below market forecasts.
UK’s equities ended today’s session in negative territories; London’s leading benchmark FTSE100 lost 0.13% to settle lower at 7,301.29. As losses in the Basic material, Technology and financial sectors weighed on share prices.
On the Brexit Front, European chief negotiator said that UK Prime Minister failed to outline what kind of new relationship the United Kingdom will have with the European Union in her speech last Friday. He also added, without any concrete offers, the union cannot trade deal, let alone a transition agreement.
On Thursday, the cable declined against the greenback to trade at 1.3453 at 17:00 GMT
German stocks edged higher by 0.02% on Monday. As Gains in the Healthcare, Consumer Non-Cyclicals and Telecommunications Sectors were offset by losses in the Financial and Utility sectors. Germany’s primary benchmark DAX 30 edged up by 0.02% to settle at nearly unchanged at 12,594.81 at the close.
Looking at specific stock news, German airliner Lufthansa is in the headlines again after it said it was prepared to dash out $238.67 million to buy assets from Bankrupt Air Berlin. Lufthansa share rose by 0.5% on the news.
Meanwhile, French equities ended today’s session in negative territory, after Paris leading benchmark CAC 40 fell by 0.27% to end the session at 5,267.13, as losses incurred in the Technology, Basic Materials and financial sectors weighed on share prices.
Regarding economic data, French second-quarter gross domestic product rose by 0.5% from the previous quarter on Friday, lifted by higher consumer spending, and on increased Corporate profit margins.
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