European markets close lower as Chinese economy slows; THG up 20%
LONDON — European stocks closed lower on Monday as investors reacted to slowing economic growth in China and soaring oil prices that fueled inflation concerns.
The pan-European Stoxx 600 tentatively ended down 0.5% as auto stocks fell 1.9% to lead losses. All sectors and major exchanges ended the session in negative territory.
Global markets are bracing for more earnings in the coming days, following a stronger-than-expected start to the U.S. earnings season last week.
US stocks rebounded on Monday, wiping out earlier losses after major averages posted their best week in months last week.
In addition to Goldman Sachs’ better-than-expected earnings on Friday, positive economic data also boosted stocks. Retail sales rose 0.7% in September, the Census Bureau said Friday, while economists polled by Dow Jones had expected a 0.2% decline.
A number of big names are expected to report results over the coming week, including Netflix, Johnson & Johnson, United Airlines and Procter & Gamble on Tuesday. Tesla, Verizon and IBM are among the other names whose earnings are to be released later this week.
Meanwhile, in Asia Pacific, stocks mostly closed lower as investors reacted to the release of major Chinese economic data that showed China’s gross domestic product rose 4.9% in the third quarter. trimester. That was below analysts’ expectations in a Reuters poll for a 5.2% expansion.
Industrial production also missed forecasts, rising 3.1% in September, against expectations in a Reuters poll for a 4.5% increase.
In terms of individual share price movement, British e-commerce company THG saw its shares jump 20% on Monday after announcing that founder Matthew Molding would divest his “golden stake” in the company and move it to the premium segment. of the London Stock Exchange. in 2022.
At the bottom of the Stoxx 600, Finnish retailer Kesko fell 5.7% while Belgian miner Umicore fell nearly 4% after it cut its profit forecast.
Did you like this article ?
For exclusive stock picks, investment ideas and a global live stream from CNBC
Register for CNBC Pro
Start your free trial now
– CNBC’s Pippa Stevens and Eustance Huang contributed to this report.