European stock markets start the week mostly with gains

Europe’s leading stock indexes registered gains in early trade on Monday, led by strong performance in the defense, healthcare and telecommunications sectors, Reuters reports. However, gains were capped by a decline in resources companies, fueled by concerns about China’s stalled property sector.

The pan-European STOXX 600 index rose 0.62 points, or 0.14%, to 459.79, after falling about 1% in the previous session. Germany’s DAX rose 76.81 points, or 0.49%, to 15,908.98. London’s leading FTSE 100 index fell 22.8 points, or 0.35, to 7,501.36. France’s gauge CAC 40 advanced 17.64 points, or 0.24%, to 7,357.83.

The SXDP healthcare index rose 0.20%, following a 5.07% rise in Philips shares to top the STOXX 600 after Dutch investment firm Exor NV acquired a 15% stake in the medical equipment company.

The telecoms index SXKP rose 0.58%, supported by a 1.5% rise in Deutsche Telekom’s share price.

Still, investor sentiment remains largely risk-averse. The SXPP index of resource companies fell 0.55%, while the SXEP index of oil and gas companies recorded a 0.68% decline, as crude oil and base metals prices fell on a stronger dollar and heightened concerns about the property sector in China.

Shares in luxury goods giant LVMH, which has heavy exposure to China, fell 0.26%.

Siemens AG shares rose 0.71% after Barenberg upgraded the German engineering and technology group’s rating.

The pan-European STOXX 600 retreated from more than one-year highs hit last month as growing concerns about growth in China and sharp moves in bond yields pressured stocks.

Eurozone bond yields rose on the day, with Germany’s benchmark 10-year government bond yield hitting a one-month high.

Geopolitical issues were also on investors’ minds after a Russian warship fired warning shots at a cargo ship in the Black Sea over the weekend.

A flurry of economic data is slated for this week, including a preliminary estimate of second-quarter eurozone gross domestic product, fresh eurozone inflation data and UK consumer price data.

Divergent trading on Wall Street

Major U.S. stock indexes posted mixed results on Monday, with the Nasdaq posting its second straight losing week in 2023 as shares of semiconductor companies fell, CBS News reported.

The Dow Jones Industrial Average rose 105.25 points, or 0.3%, to 35,281.4, supported by gains in Chevron and Merck & Co. with 2.06%, and 1.77%. The broad Standard & Poor’s 500 index fell 4.78 points, or 0.11%, to 4,464.05.

The Nasdaq tech index fell about 0.6 percent to 13,644.85, following sell-offs in AMD, Nvidia and Micron. The stock prices of the three companies fell by 2.41%, 3.62% and 1.64%, respectively.

The S&P 500 and Nasdaq were down about 0.3% and 1.9%, respectively, for the week. Both indexes posted their second consecutive losing week, the first such long streak for the tech Nasdaq since a four-week losing streak ended in December 2022. The Dow bucked the negative trend and advanced 0.6% for the week.

Investors had plenty to celebrate earlier in the week. July’s consumer price index, a key inflation gauge watched closely by markets and the Federal Reserve, came in lower than expected. Prices rose 3.2% year-over-year, which was less than the Dow Jones consensus estimate of 3.3%.

At the same time, the core CPI, which excludes volatile food and energy prices, rose 4.7% from a year earlier.

This week’s moves are the latest in yet another sign of volatility in the stock market after a strong performance in the first half of the year. All three major indexes have been in the red since early August.

“Investors continue to look for more consistency in economic data,” said Greg Bassuk, CEO of AXS Investments. “What we’re seeing with these mixed results certainly increases the likelihood of more volatility going forward.”

Decline in Asia

The main indices of the leading stock exchanges in the Asia-Pacific region recorded declines on Monday, with the Hong Kong exchange leading the losses, writes CNBC.

Hong Kong’s Hang Seng index fell 301.64 points, or 1.58 percent, to 18,773.55.

In mainland China, the benchmark Shanghai Composite fell 10.82 points, or 0.34%, to 3,178.43, while the Shenzhen Composite shed 2.64 points, or 0.13%, to end the session at the level of 1,999.65 points.

Tokyo’s leading Nikkei 225 index fell 413.74 points, or 1.27%, to 32,059.91. Investors await data on the Japanese economy and inflation, which are expected on Tuesday and Friday, respectively.

In South Korea, the Kospi index fell 20.39 points, or 0.79%, to 2,570.87 points.

Australia’s benchmark ASX 200 shed 63.1 points, or 0.86%, to end at 7,277.

In our country

Indices of the Bulgarian Stock Exchange (BSE) mostly recorded declines in early trading. The main SOFIX index fell 3.93 points, or 0.56%, to 702.60. BGBX40 was down 0.91 points, or 0.60%, at 150.92. BGTR30 advanced 0.18 points, or 0.02%, to 774.76 points. BGREIT was down 0.11 points, or 0.06%, at 189.80.

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