European stocks move away from record peak on profit taking
European stocks fell in the morning trading on Monday, to move away from the highest levels ever recorded in the previous session, on their way to incurring the first loss in the last eleven sessions, due to the acceleration of correction and profit-taking, in addition to the reluctance of investors to risk, due to concerns about the Chinese economy, and rising tensions. Geopolitics in the Far East after the fall of the Afghan government.
The Dow Jones Stocks Europe 600 index fell by more than 0.5% until 11:40 GMT, and the index ended Friday’s session, up by 0.2%, in the tenth consecutive daily gain, and recorded a new record at 476.16 points.
In terms of sessions last week, the Dow Jones Europe Index rose by 1.25%, the fourth consecutive weekly gain, due to earnings results that exceeded estimates for major companies and banks during the second quarter of this year.
The stocks Europe index declined in the morning trading on Monday, in the first session of the week, to give up its record level recorded in the previous session, in the process of incurring the first loss in the last eleven sessions, with most of the major stock exchanges and sectors in Europe in the red.
The mining and basic resources sector topped the list of the losing sectors in Europe, with a decrease of more than 2.0%, with mounting concerns about economic growth in China, the world’s largest consumer of metals and commodities.
Chinese data showed on Monday that the growth of factory production and retail sales slowed sharply in July, after the new outbreak of the Corona virus, in conjunction with the floods that disrupted business activity.
Geopolitical tensions in the Far East increased after the collapse of the Afghan government and the Taliban took control of all parts of the country after the fall of the capital, Kabul.
The futures contracts for the Standard & Poor’s 500 index fell today by 0.3%, and the index ended Friday’s session on Wall Street, up by 0.2%, in the fourth consecutive daily gain, hitting a new record at 4,468.37 points.
In Europe, the Euro Stock 50 index fell by 0.6%, in France the CAC 40 index fell by 0.9%, in Germany the DAX index fell by about 0.5%, and in London the FTSE 100 index lost about 1.2% to top the list of losing markets in Europe.