European stocks last week Friday performed below expectations. The stocks closed lower owing to the release of weaker-than-projected data which increased concerns about a slowdown in the economic growth on a global level. Specifically, Stoxx 600 closed down by 0.63% and almost all the sectors, as well as the major bourses, closed in the negative region. The focus of the market is on the possibility that there may likely be economic slowdown over the course of these coming months.
The performance of the stocks came after China reported its weaker-than-projected retail sales data last Friday. It progressed at the weakest pace ever since 2003 last month and disappointing domestic and industrial demand figures are also affecting the economic outlook of Asia. Also, the European data had below-expectation performance as IHS Markit Flash Eurozone PMI index fell to 51.7 this month, which is the lowest it has been in about 4 years.
Individual Stock Performance
Leading the losing stocks on Friday was auto stocks which traded 1.29% lower. Volkswagen, Fiat Chrysler, and Renault also led the 8.1% decline in the car sales that held in November. The major regional body of the industry made known last week Friday that the imposition of stricter new emission criteria continued to affect demand. Plastic Omnium of France fell close lower to the European benchmark bottom as it fell by 7.04% owing to series of downgrades in its ratings.
The basic resources stocks in Europe even with the extent of their exposure to the Chinese climate fell by 1.16%. The sentiment was affected by the fears surrounding the increasing risks likely to affect the economy of China as it tries to resolve the current dispute between it and the U.S. A glimpse at other individual shares revealed that Scout24 of Germany topped the European benchmark. The stocks of the company rose by 13.57% after its announcement that it was exploring a strategy that might cause its business to go private for over 5 billion euros which is approximately $5.7 billion.
Index Performances
GVC Holdings of Britain also traded higher on Friday afternoon. Its high performance was after analysts at Citi reportedly referred to a vote in Westminster based on the FOBT stakes as having a considerable positive effect on the stocks. Lawmakers in the U.K. have plans to vote on this issue this coming week. As a result of the news, GVC Holdings shares went up by 9.07%.
Dow Jones Industrial Average at the close of the trading day fell by 400 points. The performance of the index was affected by Johnson & Johnson and Walgreens. The S&P 500 also fell by 1.2% and the index was dragged down by health care and tech sectors. At the close of trading day, Nasdaq composite dropped by 1.1%.
Happenings On Brexit Front
In Europe, Theresa May, the British Prime Minister went back to Westminster upon the conclusion of a program that had the different EU leaders in attendance. May has reportedly been in search of legal assurances due to the Irish backstop. Her efforts are in a bid to secure a Brexit deal. However, sources have reported that the leaders of the European Union have said that a withdrawal agreement for Brexit has closed for renegotiation.
Also on Friday, May was reported to have insisted that additional talks concerning the Brexit deal were still possible. It will be recalled that she was able to survive a vote of no-confidence at the instance of her political party. Earlier on Thursday, the Central Bank of Europe announced that it had plans to end its bond-buying program. The bank has plans to bring down the bond purchases from a previous 15 billion euros monthly to zero. The bank, however, added it wouldn’t cease reinvestment of cash gotten from maturing bonds for a longer period.
