British PM Theresa May's statement led to drop in European shares and British pound.
European equity markets dropped lower during Monday’s session, partially led by the slump in the euro along with the decline in other equity stocks in Europe and even U.S. futures.
The Stoxx 600 Europe Index dropped by 0.4% on Monday to 363.96 points while the DAX index declined by 0.2%.
Despite the decline in European shares during Monday’s trading, the FTSE 100 gained to 7,239.26 points, 0.3% higher and recording its tenth gain in a row. The pan-European STOXX 600 index meanwhile, dropped by 0.5%.
Telecommunications sector shares were down by 1.4% during the same trading session with Vodafone (NASDAQ:VOD) posting a loss of about 1.8%.
Other sectors such as the leisure and travel sectors also led by the decline in European stocks. German aviation group Deutsche Lufthansa (DE:LHAG) shares also posted a plummeting 5.1% decline.
Shares in the banking sector were also one of the biggest losers in the recent decline in the European stocks with an overall drop of about 1.7% while Italian lending companies despite showing a positive outlook at the beginning of the year, fell 3.5%. Banco Bpm (OTC:BPSAF) shares slumped by 2,2% following a positive first week.
Medical sector companies were also down, such as the Fresenius Medical (NYSE:FMS) from Germany falling more than 3% following disappointing profits away from their forecasted numbers.
Just Eat (LON:JE), a fast food delivery company, also lost as much as 6.3% after a less than forecasted growth.
Oil futures to the STOXX also posted declines as oil prices fell on the data from Iran of increased export numbers while there is also a current outlook that U.S. production has increased drilling activity.
Although most European shares declined, other sectors such as technology stocks surged by 0.7% following an upgrade from Citi with a positive outlook on their performance this year. Volkswagen (DE:VOWG_p) shares also rose up by 4.9% on renewed confidence that the company is close to ending the remains of the diesel emissions scandal in the U.S. Sales of the carmaker also rose by 2.8% last year due to their sales in China, the company’s current largest market. Fiat Chrysler (NYSE:FCAU) shares also rose 2.8% on the announcement that the company is to invest in the modernization of two plants in the U.S.
Sterling Drops To Two-Month Low
The currency is currently on the brink of plunging further as the markets have a renewed concern regarding a ‘hard brexit’. British prime minister Theresa May’s comments regarding a hard exit from the European Union also led the sterling to drop.
On Monday, the sterling have traded down against the US dollar in anticipation of the UK economic data. The British pound also slid to as much as 0.80% during early trading down to a two-month low as May’s comment stated that the United Kingdom might be headed to finally leaving the European market.
Comments from the Prime Minister also showed that Theresa May might shift her focus to prioritizing the immigration.