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

European Stocks Rebound but U.K. GDP Adds to Global Growth Concerns

Stock MarketsJul 09, 2021 03:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets pushed higher Friday, regaining some of the previous session’s sharp losses, but are still set to end the week in the red amid growing concerns about the strength of the global economic recovery.

At 3:40 AM ET (0840 GMT), the DAX in Germany traded 0.7% higher, the CAC 40 in France rose 1.1% and the U.K.’s FTSE 100 gained 0.6%.

Concerns that rising numbers of Covid-19 cases, primarily in southeast Asia but also in the more highly-vaccinated west, will blunt progress on the economic recovery have hit sentiment of late.

The major indices in Europe closed sharply lower Thursday, with the DAX in Germany and the FTSE 100 in the U.K. falling 1.7% and the CAC 40 in France dropping 2%. Even with Friday’s advances these major indices are still set to end the week around 1% lower, underperforming the U.S. this week - a reminder of how much more heavily weighted growth-sensitive cyclical stocks are in the Old Continent.

Further evidence of the patchy recovery came with the U.K.’s May flash GDP release which showed growth of just 0.8% on the month, a sharp slowdown from 2.0% growth seen the previous month (a figure that was also revised lower). Manufacturing output fell 0.1% in May, while industrial production rose 0.8%, both much weaker than had been expected.

News that U.S. drugs giant Pfizer (NYSE:PFE) and German partner BioNTech (NASDAQ:BNTX) are developing a Covid-19 booster shot intended to target the highly transmissible delta variant has provided a lift Friday. BioNTech’s stock rose 5% as a result.

In corporate news, Philip Morris International (NYSE:PM) announced plans to buy Vectura Group in a deal valuing the maker of inhalers at 1.05 billion pounds ($1.44 billion) and trumping Carlyle Group 's (NASDAQ:CG) 958 million pound offer made in May. The deal fits a recent pattern of U.S. private and public investors vying for U.K. assets that have been left looking cheap by four years of post-Brexit uncertainty.

Elsewhere, Senior (LON:SNR) stock rose 0.8% after the U.K. engineering group lifted its full-year forecast, citing "clear signs of recovery" in the aerospace and the oil and gas sectors.

Also of interest, finance ministers and central bankers from the group of 20 largest economies in the world are set to meet later Friday, with corporate tax reform expected to be top of the agenda.

Elsewhere, oil prices edged higher as traders attempted to balance rising numbers of Covid-19 cases and the associated growth concerns with falling U.S. crude stocks.

The U.S. Energy Information Administration reported Thursday a drop in the country's crude inventories of just under 7 million barrels, while stating that fuel demand soared to 10 million barrels a day in the week before the July 4 national holiday.

At 3:40 AM ET, U.S. crude futures traded 0.7% higher at $73.47 a barrel, on course for their first weekly decline since mid-May, while the Brent contract rose 0.5% to $74.47.

Additionally, gold futures rose 0.3% to $1,804.70/oz, while EUR/USD traded 0.1% lower at 1.1836.



European Stocks Rebound but U.K. GDP Adds to Global Growth Concerns

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.
Comments (1)
Silence Dogood
Silence Dogood Jul 09, 2021 5:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
2 stories about US blacklisting more Chinese companies supported by ccp military were here just minutes ago and are now gone.. hmmm.. coincidence?
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