Tue, February 07, 2023

Europe Stock Exchanges Fall, PMI in Focus | WibestBroker

stock exchanges concept with euro bills and graphs – wibestbroker

Stock exchanges and indices in Europe fell after the release of PMI data. The collapse of Thomas Cook, which left passengers stranded, also weighed down equities.

For numbers, the pan-European STOXX 600 lost 0.7%. Most sectors and major bourses traded in the red. Germany’s DAX lost 0.3%, while France’s CAC 40 shrank by 0.2%. Over in Britain, however, the FTSE 100 gained 0.1%.

Asian indices also felt the negativity. China’s CSI 300, which is the benchmark of Shanghai and Shenzhen stocks, lost 1%.

Hong Kong’s Hang Seng index dropped 0.7%. Over in Australia, S&P/ASX 200 rose 0.3%.

The weakness in European stocks today roots from the IHS Markit’s PMI survey. The data showed the German economy contracting for the first time since September 2012. The French economy similarly slowed down.

Meanwhile, in Asia, the Chinese Commerce Ministry said that reps from China and the US had “constructive” talks in Washington.

The high-level trade talks between the two countries will continue next month.

Stock Exchanges Suffer from Thomas Cook Collapse

The exchanges also suffered from the collapse of British tour operator Thomas Cook.  The collapse inconvenienced thousands of holiday travelers.

Peter Franhauser, CEO of the company, apologized to customers and staff. He described the incident as a “matter of profound regret.”

The firm couldn’t secure a rescue package from lenders, putting 22,000 jobs at risk.

Because of this, European airlines and tour operator TUI rose to the top of the index. TUI shares increased by 8%.

The company’s collapse could cut some overcapacity, which damaged profits and weighed on holiday prices in the previous years.

Travel and leisure stocks also traded 0.4% higher after the news of the collapse.

Elsewhere, many other sectors traded in the negative. Most of them traded 1% lower during the early morning session. Mining stocks led the losses.

ArcelorMittal was the weakest link, with its stock price losing more than 5%.

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