Markets

European stocks down, rising cases and quarantine chaos hurt sentiment

Editor: Peter Nurse

investing. com – European stock markets fell on Monday. Increasing Covid-19 events around the world are putting pressure on the sentiment. Oil prices are falling as producers agree to increase production.

DAX down 1.3% CAC 40 1.4% and FTSE 100 lost 1.3%.

A number of European countries, including France, the Netherlands, Greece and Spain, have announced new containment measures to curb increased infections, largely due to the delta variant.

Since then, the French government has backed away from plans to repeal the new rules to increase the use of vaccination certificates in the wake of major protests over the weekend. However, fully vaccinated individuals returning from France to England and Wales will still have to go into quarantine from Monday.

This news hit the travel industry. EasyJet (LON: EZJ) fell 5.3%, while British Airways owner IAG (LON: ICAG) 4.8% and Air France KLM (OTC: AFLYY) lost 3.7%.

Against this backdrop, the UK is lifting restrictions on Monday, including the end of social distancing rules and community gatherings, and is counting on successful vaccination programmes, with recorded incidents exceeding 50,000 daily.

The devastation caused by the flooding in Germany and Belgium in the last few days in Europe may also dampen the sentiment this week. RWE (DE: RWEG) fell 3% after it said tens of millions of euros were wasted at its facilities due to flooding.

In other corporate news, there is Ermenegildo Zegna. According to the Financial Times report, the Italian fashion cluster Investindustrial Acquisition Corp., a special purpose acquisition company listed on the New York stock exchange. agreed to go public, resulting in an operating value of $3.2 billion.

Billionaire investor Bill Ackman, on the other hand, believes that Vivendi (OTC: VIVHY) is rescheduling plans to acquire Universal Music Group for up to 10% and will now use the main hedge fund for the acquisition, rather than a special purpose buyout.

Entertainment (PA: UBIP) lost 1%. The game maker has delayed the release of Rainbow Six Extraction and Republic of Riders by four and nearly two months, respectively.

On Monday, the economic calendar in Europe is quite empty, but investors European Central Bank’s (ECB) will await its meeting on Thursday. The Board of Directors is expected to provide more dovish guidance after its latest strategic review gives it a little more freedom to tolerate high inflation.

On the other hand, oil prices weakened on Monday. The producer cluster agreed to increase production during talks over the weekend.

OPEC+ will increase production by 400,000 barrels per day each month from August 2021. Saudi Arabia, UAE, Iraq, Kuwait and Russia will raise their baseline benchmarks by which production cuts are measured from May 2022.

WTI down 1.3% to $70.66 Brent traded at $72.72, down 1.2%.

on the other hand gold futures processes down 0.6% to $1,804.65 EUR/USD traded at 1.1780, down 0.2%.

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