European stocks close sharply lower on Fed Taper Talk
(RTTNews) – European stocks closed sharply lower on Thursday, weighed down by a massive sell-off by mining and energy companies, and amid uncertainties over the Fed’s cutback plans after the minutes of the Fed’s meeting in July showed policymakers were to cut monthly bond purchases later this year.
The continued rise in cases of the delta variant coronavirus has also rocked sentiment.
The pan-European Stoxx 600 fell 1.42%. The UK FTSE 100 lost 1.54%, the German DAX slipped 1.25% and the French CAC 40 fell 2.43%. The Swiss SMI closed down 1.13%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Russia, l Spain and Turkey closed with strong to moderate losses, while Portugal edged down.
In the UK market, Anglo American Plc plunged 10%. Burberry Group, M&G, Phoenix Group Holdings, BP, Antofagasta, Imperial Brands, ITV, Informa, Royal Dutch Shell, Evraz, Glencore and Melrose Industries lost 3-6.5%.
McBride shares fell more than 14%. The maker of private label and contract-made products said it now expects FY2022 adjusted pre-tax profit to be 55 to 65 percent below the current market consensus for the year 2021.
HSBC Holdings, Rio Tinto, ICP, BHP Group, Standard Chartered, Barclays Group and Prudential also fell sharply.
Just Eat Takeaway.Com, Polymetal International, Bunzl, Smith & Nephew, National Grid, Rentokil Initial and Ocado Group ended with net to moderate gains.
On the French market, Kering shares fell by more than 9%.
Technip plunged more than 7% and ArcelorMittal lost 6.5%. LVMH lost around 5.6%, while Hermes International, Faurecia, Pernod Ricard, Valeo, Société Générale, Airbus Group, Saint Gobain, Publicis Groupe, BNP Paribas and Renault lost 2.4 to 5%.
In Germany, BASF, Fresenius, Covestro, HeidelbergCement, Deutsche Bank, Thyssenkrupp, Adidas, Siemens and MTU Aero Engines fell sharply.
Volkswagen ended sharply lower after saying it may have to cut production further due to a semiconductor shortage. BMW and Daimler also ended notable losses.
In economic news, Switzerland’s exports increased in July, data from the Federal Customs Administration revealed on Thursday.
Exports rose 0.6% real month-on-month in July, following a 3% decline in June. Imports rose 1% per month in July, following a 2.7% drop the month before.
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