LONDON – European equities began the new trading week with a slight drop on Monday, amid a downturn in global markets.
The pan-European Stoxx 600 fell 0.1% below the flat line at the start of the negotiations, oil and gas stocks fell 1% for leadership losses, while the technology sector rose 0.8%.
European markets are following a dull tone set elsewhere overnight and last week; Asia-Pacific shares were traded mixed on Monday, with investors in the region reacting to China’s latest growth data, showing that its GDP grew 2.3% last year. This compares with economists’ expectations of GDP expansion of just over 2%. Even so, other data showed that retail sales in the country fell, decreasing 3.9% in the year.
Meanwhile, US stocks fell on Friday to close a difficult week, as markets weighed on President-elect Joe Biden’s $ 1.9 trillion stimulus plan, along with the most recent gains from some of the biggest American banks. US markets are closed on Mondays for public holidays.
Biden’s proposal, called the American Rescue Plan, includes raising additional federal unemployment payments to $ 400 a week and extending them through September, direct payments to many Americans from $ 1,400 and extending federal moratoriums on evictions and foreclosures through September.
The plan also provides $ 350 billion in aid to state and local governments, $ 70 billion for Covid’s testing and vaccination programs and raising the federal minimum wage to $ 15 an hour.
In Europe, the coronavirus pandemic and the launch of vaccines continue to dominate the headlines. The Netherlands saw several thousand people protest the blockade measures on Sunday, before being dispersed by the riot police. In the meantime, the United Kingdom continues to lead the pace when it comes to launching vaccines; on Monday, it is expanding its program to offer the first dose of the vaccine to anyone 70 and older who is considered clinically extremely vulnerable.
Stellantis starts trading
In corporate news, the $ 52 billion merger between the owner of Fiat Chrysler, FCA, and Peugeot’s PSA Group, was completed over the weekend, creating the world’s fourth largest automaker by volume. The new company, named Stellantis, will be headed by former PSA CEO Carlos Tavares. Stellantis’ shares gained 2.8% in Monday’s first trades.
Carrefour’s shares fell more than 7% in the first trades, after Canadian Alimentation Couche-Tard withdrew its takeover bid by Europe’s largest retailer.
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– Fred Imbert, Jesse Pound and CNBC’s Eustance Huang contributed to this report.