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.
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%.
Quick Look: Bitcoin price currently consolidates around $57,000, down by 5%; Fed maintains high interest… Read More
Quick Look: Microsoft invested $1 billion in OpenAI in 2019 to catch up with Google… Read More
Ethereum in Ascending Channel: Risk at $3,000, Upside to $3,500 Quick Look: Bullish Channel: Ethereum… Read More
PayPal's Strong Start in 2024: $403.9B Payment Volume Surge Quick Look: Significant Volume Increase: PayPal… Read More
XTB announced its entry into the UK's £400 billion ISA market less than a quarter… Read More
In this BTN Centre review, we will embark on a trading journey, where cutting-edge technology… Read More