European equities closed lower on Monday, weighed down by political uncertainty in France and sharp swings in individual stocks.
The pan-European Stoxx 600 ended down 0.45%, while Germany’s DAX dipped 0.42%. France’s CAC 40 underperformed, falling 1.64% after Prime Minister François Bayrou said he will seek a confidence vote in parliament next month on the government’s budget plan. U.K. markets were closed for a public holiday.
Corporate Movers
-
Orsted plunged more than 16% after U.S. authorities ordered a halt to construction of a nearly completed offshore wind project near Rhode Island, clouding the Danish developer’s capital-raising plans.
-
JDE Peet’s surged as much as 17% after U.S. drinks company Keurig Dr Pepper announced a €15.7 billion ($18.4 billion) acquisition of the Dutch coffee group.
-
Puma jumped 16% following a Bloomberg report suggesting the sportswear maker could be up for sale. The company declined to comment when contacted by CNBC.
Macro Developments
German business sentiment continued to improve. The Ifo business climate index rose in August to its highest level in more than a year, with expectations strengthening even as companies reported a slightly weaker current situation.
Markets also remained attentive to U.S. monetary policy. Federal Reserve Chair Jerome Powell signaled at Jackson Hole on Friday that the Fed may be open to rate cuts, easing some investor concerns about restrictive policy.
Last week, investors also absorbed new details on the U.S.-EU trade agreement, which provided greater clarity for sectors including pharmaceuticals.
Looking Ahead
The start of the week is light on data releases, but investors are bracing for a heavy slate of eurozone inflation prints on Friday, with France, Germany, and Italy all due to publish CPI figures.
Earnings season also continues, with results from Pernod Ricard in Europe and Nvidia in the U.S. set to attract global attention.
Meanwhile, U.S. equities opened slightly lower on Monday, while Asian markets advanced, led by gains in mainland China and Hong Kong.
