European Stock Indicators Fall on Weak Stats

Equity markets in Western Europe have returned to decline after strong growth the day before. The composite index of the largest enterprises in the region Stoxx Europe 600 fell by 1.5% and amounted to 449.38 points.

The German DAX index by 12:14 Moscow time fell by 2.21%, the French CAC 40 – by 1.99%, the British FTSE 100 – by 1.49%. Spain’s IBEX 35 and Italy’s FTSE MIB lost 1.79% and 2.03%, respectively. Danish medical device maker Ambu A / S is down 7% to lead the decline in the Stoxx 600. The company has warned that its revenues and earnings may fall above forecast.

The cost of luxury and branded goods manufacturer LVMH (PA: LVMH) Moet Hennessy Louis Vuitton SE is reduced by 2%. LVMH acquired French cosmetics brand Officine Universelle Buly. The financial terms of the deal were not disclosed. The capitalization of the Spanish telecommunications Telefonica (MC: TEF) S.A. decreases by 1.4%. The company plans to sell a stake in its fiber optic division, which could be valued at 15 billion euros.

Germany’s TUI Group (DE: TUIGn), Europe’s largest tour operator, is down 0.6%. TUI’s loss before tax and interest (EBIT) increased to € 748 million from € 578 million in the third financial quarter. The company intends to place an additional share of about 1.1 billion euros in order to reduce its debt. The growth leaders among the Stoxx 600 components are shares of the British food retailer Tesco (+ 4.3%) after the company increased its net profit in the first half of 2021 fiscal years by more than 2.5 times and improved its financial forecast for the year.

Investors are Concerned

Investors are worried about a slowdown in the economic recovery caused by the energy crisis in Europe and China, problems in supply chains, shortages of certain goods and accelerating inflation. This is evidenced by the statistics published today.

German industrial orders fell 7.7% in August from the previous month, the country’s economic ministry said. Analysts on average were expecting a 2.1% decline, according to data from Trading Economics. Orders from the eurozone countries increased by 1.6%, from other countries – fell by 15.2%. Domestic orders of industrial enterprises in August decreased by 5.2%.

Retail sales in the euro area in August rose 0.3% from the previous month, according to data from the Statistical Office of the European Union (Eurostat). Analysts on average were forecasting a 0.8% rise, according to data from Trading Economics. Compared to August 2020, retail sales are unchanged.