European Stocks Pull Back
European stocks closed sharply lower on Monday as fresh civil unrest added to local political uncertainty, triggering selloffs in the bond markets of major Eurozone members. The Euro STOXX 50 fell 1% to 6,141 and the STOXX Europe 600 lost 0.9% to 639. Protests across France and Italy against rising living costs escalated into clashes with local security forces, pressuring the outlook for the countries' respective budgets to pass smoothly ahead of their elections next year, at a time where rising yields across the Eurozone had already triggered concerns of contagion in the bloc's sovereign bond market. Banks therefore led the losses, with Deutsche Bank, BNP Paribas, Santander, UniCredit, and Intesa Sanpaolo dropping over 2%. Industrials were also down, with Airbus and Rheinmetall dropping close to 3%. Meanwhile, Hermès and SAP were relatively close to the flatline ahead of their earnings this week.
European stocks closed sharply lower on Monday as fresh civil unrest added to local political uncertainty, triggering selloffs in the bond markets of major Eurozone members. The Euro STOXX 50 fell 1% to 6,141 and the STOXX Europe 600 lost 0.9% to 639. Protests across France and Italy against rising living costs escalated into clashes with local security forces, pressuring the outlook for the countries' respective budgets to pass smoothly ahead of their elections next year, at a time where rising yields across the Eurozone had already triggered concerns of contagion in the bloc's sovereign bond market.
Banks therefore led the losses, with Deutsche Bank, BNP Paribas, Santander, UniCredit, and Intesa Sanpaolo dropping over 2%. Industrials were also down, with Airbus and Rheinmetall dropping close to 3%. Meanwhile, Hermès and SAP were relatively close to the flatline ahead of their earnings this week.