LONDON – European equities began a nine-week slightly lower trading week on Monday amid a pullback in global markets.
The pan-European Stoxx 600 fell 0.1% below the flat line at the beginning of trade, with oil and gas stocks falling 1% to lead to losses, while the technology sector rose 0.8%.
European markets are following a weak tone set elsewhere overnight and last week; Shares in Asia-Pacific traded mixed on Monday, while investors in the region reacted to the latest Chinese growth data showing that its GDP grew by 2.3% last year. This was compared to economists’ expectations of GDP expansion of just over 2%. However, other data showed that retail sales in the country decreased, contracting by 3.9% for that year.
US stocks, meanwhile, fell on Friday to close a difficult week, as markets weighed in on President-elect Joe Biden’s $ 1.9 trillion stimulus plan, along with the latest gains from some of the biggest gains. large American banks. US markets are closed on Monday for a holiday.
Biden’s proposal, called the American Rescue Plan, includes increasing additional federal unemployment payments to $ 400 a week and extending them until September, direct payments to many Americans of $ 1,400, and extending federal moratoriums on evictions and executions until September.
The plan also provides $ 350 billion in aid to state and local governments, $ 70 billion in Covid tests and immunization programs, and an increase in the federal minimum wage to $ 15 an hour.
In Europe, the coronavirus pandemic and the launch of vaccinations continue to dominate the headlines. The Netherlands saw several thousand people protesting the blockade on Sunday before being dispersed by riot police. Meanwhile, the UK continues to lead the way in launching vaccinations; on Monday, it is expanding its program to offer a first dose of vaccine to anyone aged 70 and over and those who are considered clinically extremely vulnerable.
Stellantis starts trading, Carrefour ends
In corporate news, the $ 52 billion merger between FCA owner Fiat Chrysler and PSA group owner Peugeot was completed over the weekend, creating the world’s fourth-largest automaker. The new company, called Stellantis, will be led by former PSA CEO Carlos Tavares. Stellantis gained 2.8% in early transactions on Monday.
Carrefour shares fell more than 7% in early trading after Alimentation Couche-Tard in Canada dropped its takeover bid for Europe’s largest retailer.
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– CNBC’s Fred Imbert, Jesse Pound and Eustance Huang contributed to this report.