Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

European stocks fall as utilities drag, luxury slides after China data

09/15/2021 | 04:43am EDT
German share price index DAX graph is pictured at the stock exchange in Frankfurt

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* Spain to cap gas price, utilities' profits

* H&M drops after downbeat earnings

* Oil stocks among few gainers

Sept 15 (Reuters) - European shares slipped on Wednesday as utilities fell on Spain's move to cap energy bills, while luxury stocks continued to weaken on worries about a slowing Chinese economy.

Spain's cabinet passed emergency measures on Tuesday to reduce sky-high energy bills by redirecting billions of euros in extraordinary profits from energy companies to consumers and capping increases in gas prices.

The utilities sector tumbled 2.9%, with Europe's biggest utility, Enel falling more than 5%. Spain's IBEX lost 1.7%, the most among regional indexes.

The benchmark STOXX 600 index was down 0.8%, and off about 2.5% from the record high in mid-August.

Data showed China's factory and retail sectors faltered in August with output and sales growth hitting one-year lows following fresh coronavirus outbreaks and supply disruptions.

"The headlines continue to deter foreign investor interest back into Beijing," said Edward Moya, senior market analyst at OANDA.

"Nervousness is growing that this string of Chinese crackdowns/concerns could be the first domino to fall."

Retail stocks slipped 2.3% on concerns over the fresh COVID-19 outbreak in China's Fujian province and signs of tighter regulations in Macau, the world's largest gambling hub.

French luxury goods makers LVMH and Kering fell over 4% each.

"If you consider Macau, that's impacted the luxury goods sector in Europe. China retail sales numbers were also pretty weak," said Keith Termperton, a sales trader at Forte Securities.

While optimism about a steady European economic recovery remains, the STOXX 600 is on course to end its seven-month winning streak in September, as investors grow anxious over global growth and monetary policy outlook.

UK stocks also came under pressure after data showed Britain's inflation rate posted a record jump to hit a nine-year high in August.

Fashion retailer H&M fell 3.1% as quarterly sales increased less than expected, while Zara owner Inditex slipped 1.3% even as sales approached pre-pandemic levels.

Swedish Match rose 4.3% after the tobacco and nicotine products maker unveiled plans to spin off its U.S. cigar business to shareholders and list it on the stock market.

Dutch online food delivery company Just Eat Takeaway dropped 4.6% after the Financial Times reported that UK rival Deliveroo and Amazon will offer free delivery to Prime subscribers. Deliveroo gained 1.1%.

Oil stocks were the top gainers as crude prices climbed after industry data showed a larger than expected drawdown in crude oil stocks in the United States. (Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta and Emelia Sithole-Matarise)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AMAZON.COM, INC. 0.58% 3435.01 Delayed Quote.4.86%
DELIVEROO PLC -4.05% 289.3 Delayed Quote.0.00%
ENEL S.P.A. -0.51% 7.173 Delayed Quote.-13.33%
HENNES & MAURITZ AB 0.45% 168.84 Delayed Quote.-1.84%
INDITEX -0.57% 31.3 Delayed Quote.20.20%
JUST EAT TAKEAWAY.COM N.V. -1.67% 70.59 Real-time Quote.-23.60%
KERING -0.46% 643.6 Real-time Quote.8.28%
LVMH MOËT HENNESSY LOUIS VUITTON SE 0.55% 659.7 Real-time Quote.29.13%
SWEDISH MATCH AB 0.28% 79.18 Delayed Quote.24.15%
Latest news "Economy & Forex"
02:18aUK retail sales fall unexpectedly in September
RE
02:00aElectrified cars hit almost a fifth of EU Q3 vehicle sales
RE
01:40aRENAULT : says chip crunch will lower production more than forecast
RE
01:35aEvergrande averts default, wires funds due Sept 23
RE
01:23aSOFTBANK : Exclusive-SoftBank in talks to sell French robotics business to Germany's United Robotics -sources
RE
01:21aChina coal prices dive as govt plans intervention to ease power crunch
RE
01:17aOil prices drop; Brent on track for first weekly dip in seven
RE
01:09aIndian shares advance on bank, auto gains; investors await Reliance earnings
RE
01:04aJapan Sept output likely fell as supply disruptions hit automakers
RE
01:00aSoftbank in talks to sell french robotics business to germany's united robotics - sources and documents
RE
Latest news "Economy & Forex"