European markets hovered near the flatline and traded near six-month lows amid a mix of rising tensions in the Middle East, less-than-inspiring corporate earnings growth, and U.S. economic slowdown worries.
European markets continued their decline for the second day on Monday amid growing worries about the U.S. economy's strength. Market sentiment deteriorated after the eurozone economy stalled in July, as weak domestic demand overshadowed relative strength in exports.
European markets extended weekly losses amid worries of domestic economic stagnation, a weakening economic backdrop in the U.S., and persistent deflation worries in China.
BMW guided a cautious annual earnings outlook due to the ongoing demand weakness in China. Rolls Royce reported higher profit, raised its annual income outlook, and planned to reinstate dividends. Arcelor Mittal reported a sharp decline in second-quarter earnings.
Positive earnings announcements lifted market sentiment in Europe, and benchmark indexes rebounded. Consumer price inflation in the eurozone accelerated after elevated service inflation contributed to overall inflation.
The Euro Area GDP growth rate in the second quarter matched the first quarter, and Spain led the region with an increase of 2.9%. German GDP contracted by 0.1%.
European markets advanced as investors awaited the monetary policy decisions from major central banks in the U.S., the U.K., and Japan. Bond yields in Germany, France, and Italy dropped to a four-month low.
European markets extended weekly gains as investors reviewed the latest quarterly results from Hermes, EssilorLuxottica, Babcock International, and Mercedes Benz.
European markets extended weekly losses amid rate path uncertainty, a global tech outage, and a lack of policy clarity in China. Resource stocks were under pressure after policymakers failed to make major policy announcements at the end of the much-delayed Third Plenum.
The European Central Bank held its three key lending rates steady after trimming rates by 25 basis points in June for the first time since 2016. The European Union passenger car registration increased in June, but battery vehicle sales eased.
