European shares drop on global worries; Italy, Spain underperform

European shares fell today, as negative news from around the globe including Italy and Argentina’s political uncertainty and persistent unrest in Hong Kong, compelled investors to take refuge in safe harbours like bonds and gold. — Reuters pic
fell today, as negative news from around the globe including Italy and Argentina’s political uncertainty and persistent unrest in Hong Kong, compelled investors to take refuge in safe harbours like bonds and . — Reuters pic

BERLIN, Aug 13 — European shares fell today, as negative news from around the globe including Italy and Argentina’s political uncertainty and persistent unrest in Hong Kong, compelled investors to take refuge in safe harbours like bonds and gold.

The pan-European STOXX 600 index fell 0.4 per cent by 0810 GMT, with European lenders weighing the most on the benchmark.

Markets world-wide, already reeling from fears that the United States and may not end their bitter trade-war anytime soon, were further distressed as Argentina’s currency crashed, unrest in Hong Kong intensified and Italy’s political worries deepened.

“It’s a number of different things that’s weighing on sentiment today, it’s a mix of everything,” said David Madden, analyst at CMC Markets in London.



“There are just negative stories from every corner of the globe you look at, not independently, but when you piece them together it becomes overtly negative.”

Milan-listed shares were down 0.7 per cent, hitting their lowest since June as right-wing League leader Matteo Salvini’s drive for early elections hit a road bump with parliamentary leaders failing to decide when the Senate should debate his no-confidence motion.

Italian markets had tumbled last week when Salvini pulled his support from the coalition arrangement at the center.

Spanish stocks, particularly banks which have exposure to Latin , underperformed as investors dumped Argentine assets on worries over the return of populist policies after President Mauricio Macri was trounced in presidential primaries.

Argentina’s peso collapsed on Macri’s defeat, losing roughly 15 per cent of its value to 52.15 per dollar after crumbling to an all-time low of 61.99 earlier on Monday.

Corporate news was light as the second-quarter earnings season draws to a close.

Henkel shares slid 5 per cent after the German consumer goods company lowered its full-year outlook for sales and earnings, but German meal-kit delivery firm HelloFresh jumped 7 per cent on breaking-even for the first time since its trading debut.

The withdrawal of British food delivery service Deliveroo from the German market sent shares of competitor Delivery Hero higher, while Takeaway.com which owns Delivery Hero’s German arm rose 3 per cent.



Shares of tour operator TUI rose over 3 per cent after it said robust business outweighed problems with the grounding of Boeing’s 737 MAX jets in the third quarter and upheld its annual earnings outlook.

Defensive plays such as real estate and telecom were among the few sectors in the black. — Reuters

Source: The Malay Mail Online





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