LONDON – European equities started the new trading week slightly lower on Monday amid a downturn in world markets.
The pan-European Stoxx 600 fell 0.1% below the flat line in early trading, oil and gas inventories fell by 1% to lead losses, while the technology sector climbed by 0.8%.
European markets follow a faint tone set overnight and last week elsewhere; Shares in the Asia-Pacific traded mixed on Monday as investors in the region reacted to the latest Chinese growth data showing that GDP rose 2.3% last year. This is compared to the economists’ expectation of GDP expansion of just over 2%. Further data showed that retail sales in the country declined and fell by 3.9% for the year.
Meanwhile, U.S. equities fell on Friday to end a difficult week as President-elect Joe Biden’s $ 1.1 billion stimulus plan weighed in alongside the latest earnings of some of the largest U.S. banks. Markets in the US closed on Monday for a holiday.
Biden’s proposal, called the U.S. bailout plan, includes raising additional federal unemployment benefits to $ 400 a week and extending them to September, direct payments to many Americans of $ 1,400, and extending federal moratoriums on evictions and negatives. to September.
The plan also calls for $ 350 billion in state and local government assistance, $ 70 billion for Covid testing and vaccination programs and an increase in the federal minimum wage to $ 15 per hour.
In Europe, the coronavirus pandemic and the introduction of vaccinations continue to dominate the news. The Netherlands saw on Sunday that thousands of people had protested against closure measures before being dispersed by riot police. Meanwhile, the UK still remains the pace when it comes to the introduction of vaccinations; On Monday, it expands its program to offer a first dose of the vaccine to anyone 70 years and older, and those considered clinically extremely vulnerable.
Stellantis starts trading, Carrefour trades
In corporate news, the $ 52 billion merger between Fiat Chrysler owner FCA and Peugeot owner PSA Group was completed over the weekend, creating the world’s fourth largest carmaker by volume. The new company, called Stellantis, will be headed by former PSA CEO Carlos Tavares. Stellantis shares rose 2.8% in early trading on Monday.
Carrefour shares fell more than 7% in early trading after Canadian Alimentation Couche-Tard abandoned its takeover of Europe’s largest retailer.
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– Fred Imbert, Jesse Pound and Eustance Huang from CNBC contributed to this report.