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LONDON – European equities started the new trading week a little lower on Monday, amid retreating global markets.
The pan-European Stoxx 600 slipped 0.1% below the early trading flat line, with oil and gas stocks falling 1% to lead to losses while the tech sector climbed 0.8%.
European markets follow a lackluster tone set elsewhere overnight and last week; Asia-Pacific stocks traded mixed on Monday as investors in the region reacted to the latest growth data from China showing its GDP grew 2.3% last year. This compares to economists’ expectations for a GDP expansion of just over 2%. Still, other data showed retail sales in the country fell, contracting 3.9% for the year.
Meanwhile, US stocks fell on Friday to end a tough week as markets weighed in on President-elect Joe Biden’s $ 1.9 trillion stimulus package, as well as the latest earnings from some of America’s biggest banks. US markets are closed on Mondays for a statutory holiday.
Biden’s proposal, called the American Rescue Plan, includes increasing additional federal unemployment payments to $ 400 per week and extending them through September, direct payments to many Americans of $ 1,400, and extending federal moratoria on evictions and foreclosures until September.
The plan also includes $ 350 billion in aid to state and local governments, $ 70 billion for Covid screening and vaccination programs, and increasing the federal minimum wage to $ 15 an hour.
In Europe, the coronavirus pandemic and the rollout of vaccinations continue to grab the headlines. The Netherlands saw several thousand people demonstrate on Sunday against the lockdown measures before being dispersed by riot police. Meanwhile, the UK continues to lead the pace in vaccine rollout; On Monday, it is expanding its program to offer a first dose of the vaccine to anyone aged 70 and over, and to those considered clinically extremely vulnerable.
Stellantis begins operations, agreement with Carrefour
In business news, the $ 52 billion merger between FCA, owner of Fiat Chrysler, and PSA Group, owner of Peugeot, was finalized this 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% at the start of trading on Monday.
Carrefour shares fell more than 7% at the start of trading after Canada Food Couche-Tard abandoned its takeover bid on Europe’s largest retailer.
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– CNBC’s Fred Imbert, Jesse Pound and Eustance Huang contributed to this report.
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