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Europe close: Stocks steady ahead of slew of corporate updates, Fed

By Alexander Bueso

Date: Monday 26 Jul 2021

Europe close: Stocks steady ahead of slew of corporate updates, Fed

(Sharecast News) - European stocks finished on a mixed note after regulatory worries hit Chinese markets and ahead of a busy week for corporate earnings and economic data.
"Stocks are struggling at the beginning of a busy week, while the dollar is also jumpy as traders weigh up the likely outcome of this week's Fed meeting [on Wednesday]," said IG chief market analyst Chris Beauchamp.

"US oil and energy stocks have supported the market this afternoon, but overall it looks like the week will see little progress for stocks given the weight of news expected. After a strong performance last week, it appears that the usually-lacklustre end to July will reassert itself."

To take note of, according to JP Morgan, fully half of US and European corporates were due to update investors over the week.

The pan-European Stoxx 600 index was down 0.08% at 461.14, alongside a 0.32% dip for Germany's Dax to 15,618.98.

Milan's FTSE Mibtel on the other hand added 0.68% to 25,296.40 while Spain's Ibex 35 was 0.67% higher to 8,775.2.

Dampening investor sentiment at the start of the week was news of a further crackdown on China's private sector by officials in Beijing, particularly on US-listed firms, which Yale University senior fellow, Stephen Roach, said signalled a 'Cold War' was now afoot.

In Germany meanwhile, an Ifo institute survey showed business morale fell unexpectedly in July on continuing supply chain worries and amid rising coronavirus infections.

On the equity side of things, Porsche edged up even as the stock went ex-dividend, while French car parts maker Faurecia slipped 5.71% despite raising its 2021 net cash flow target.

Dutch technology investor Prosus, which has a 28.9% stake in Chinese internet giant Tencent, fell 8.84% to the bottom of the Stoxx 600 after Beijing intensified its regulatory crackdown on Tencent.

Meanwhile, Europe's largest low-cost carrier Ryanair was up 4% as it lifted full-year traffic forecasts on strong summer bookings. Shares in budget rival easyJet also rose.

Spanish pharmaceuticals company Almirall fell 11.64% after it posted a first-half net loss of €42.8m.

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