News and Information from the Financial Markets

Brussels Stock Exchange
Brussels Stock Exchange

European indices with weak start into the week

After last week's positive results, the European indices are starting the new trading week in negative territory. This could have different reasons.

After the strong gains of the previous week, profit-taking is certainly a key reason why the indices were unable to carry their momentum into the new trading week. In addition, the purchasing managers' indices from several EU countries published today do not seem to have convinced investors. While the data from Germany was largely in line with expectations or slightly better, the important services sector in France and Italy, for example, failed to fulfil expectations and fell well short of them. With a value of 45.2, an increase of 0.8 points was recorded in France. However, analysts had expected an increase of 1.7 points to 46.1. In Italy, on the other hand, where a fall of 1.4 points had already been expected, the PMI for services fell by 2.2 points to 47.7.

Only the Spanish PMI for services was convincing, climbing 0.6 points from 50.5 to 52.1 despite an expected decline of 1.2 points. Overall, the services sector in the euro area is below the 50-point mark, which is regarded as the threshold for growth. This less than positive development appears to be leading to a certain reluctance on the part of investors to invest in European equities.

The leading German DAX index is currently down by around 0.30% after starting the trading day with a slight gain. The situation is similar for the French CAC40, which is currently down by around 0.50%. Only the FTSE 100 is currently down somewhat more moderately at around 0.10%.


Related Articles

Risk Warning: Trading CFDs and other leveraged financial products on margin and derivatives always involves a high degree of risk. There is a possibility of losing all or part of your invested capital. Therefore, these products may not be suitable for all investors. Please ensure that you obtain detailed information on these products and/or consult an independent financial advisor.

The website operator may be remunerated by advertisers on this website based on your interaction with the advertisements or advertisers.

Disclaimer: The authors' assessments of market behaviour contained on this website do not constitute financial advice or a solicitation or recommendation to buy or sell financial products, but are merely a personal assessment. If you incorporate the author's assessment into your decision, you do so entirely at your own risk. If you trade in financial products, you must be aware that you may incur a loss of up to the amount of your entire investment. Actively familiarise yourself with trading and the characteristics of the instruments, especially leveraged derivatives, and/or seek independent advice before investing your own money and only use capital that you can afford to lose.

We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.