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Europe open: Shares lower on global tensions

By Frank Prenesti

Date: Monday 22 Jul 2019

(Sharecast News) - European shares were slightly lower at the Monday open as tensions in the Gulf and political wrangling in Italy made investors wary.
The pan-European Stoxx 600 was TOXXE was down 0.12%, with all bourses bar London's FTSE 100 in the red.

Spreadex analyst Connor Campbell said European investors had "hit the snooze button, unwilling to get out of bed for what is looking like a pretty boring economic calendar this Monday"

"At the start of a week that will almost certainly crown Boris Johnson as Prime Minister by Wednesday, and following a weekend full of headlines about rising tensions between Iran and the West, the markets would be forgiven for feeling a bit worse for wear."

"Having already unwound a chunk of last week's rebound on Friday, the pound continued to trickle lower, opening down 0.2% against both the dollar and the euro.

"It will be interesting to watch how the currency performs this week. It is likely priced in that Johnson will win the Tory leadership contest; what is more uncertain is what happens next, with sterling potentially sensitive to the make-up of (his) Cabinet."

The mood was not helped by Iran's seizure of a British oil tanker on Friday and suggestions a rift between Italy's governing coalition partners may lead to a snap election.

In equity markets, oil majors BP and Shell gained amid heightened Middle East tensions.

Premier Inn owner Whitbread was on the back foot after saying it has completed a programme to return £2.5bn to shareholders following the sale of Costa Coffee to Coca-Coca last year.

Shares in health technology company Philips rose as the Dutch firm reported a better-than-expected 6% rise in sales for the second quarter, boosted by strong demand in China and the US.

British Gas owner Centrica was in the red following reports over the weekend that it's planning to slash its dividend for the second time in four years.

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