Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European stocks flat as tech losses offset China data optimism

Stock MarketsAug 10, 2020 04:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar

(Reuters) - European shares were largely flat on Monday as renewed U.S.-China tensions hit technology stocks, but a slowing decline in China's producer prices and rising oil prices limited losses.

The pan-European STOXX 600 index (STOXX) edged up 0.1% at the start of a week that could see subdued trading as traders head out for summer holidays in Europe.

Sectors seen as sensitive to economic health such as banks (SX7P), oil and gas firms (SXEP) and miners (SXPP) rose after data showed China's factory deflation eased in July, driven by a rise in global oil prices and as industrial activity climbed back towards pre-coronavirus levels.

Energy majors BP (L:BP), Royal Dutch Shell (L:RDSa) and Total (PA:TOTF) rose between 0.8% and 2.5% as crude prices gained after Saudi Aramco (SE:2222) raised optimism about Asian demand and Iraq pledged to deepen supply cuts. [O/R]

Heavyweight technology index (SX8P) fell 1.2%, capping gains in the broader market amid worries over the U.S-China rift ahead of a scheduled trade talks on Aug. 15 to review the agreement signed in January.

Dutch tech investor Prosus (AS:PRX) slid for a third day running as the U.S. prepares ban on two popular Chinese apps, WeChat and TikTok.

"President Trump's decision is yet another one that could prompt a counter response and possible escalation from Beijing, with U.S. companies operating in Hong Kong and China, particularly vulnerable," Michael Hewson, chief market analyst at CMC Markets, wrote in a note.

With the bulk of earnings season over, investors were monitoring the ongoing negotiations between White House officials and Democrats over a fifth bill to address the economic impact of the coronavirus pandemic.

U.S. President Donald Trump on Saturday signed executive orders and memorandums aimed at unemployment benefits, evictions, student loans and payroll taxes.

Meanwhile, a resurgence in COVID-19 cases in Europe was also investors' radar as Britain on Sunday recorded its highest daily rise in new infections since late June.

French engineering company Spie (PA:SPIE) jumped 4.2% after a double upgrade to "buy" from Jefferies (NYSE:JEF), while Norwegian energy firm Equinor (OL:EQNR) rose 1% after it appointed a company executive Anders Opedal as chief executive officer.

In Britain, fashion retailer Superdry (L:SDRY) jumped 18.7% agreed to a new 70 million pounds ($91.5 million) lending facility, while AA (L:AAAA) surged 14.6% after Sky News reported that Apollo Global Management (N:APO) was weighing a 3 billion pound takeover bid for the roadside recovery group.

European stocks flat as tech losses offset China data optimism

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email