European STOXX 600 index sees decline following week of strong gains
Date
12/5/2023 3:42:48 AM
(MENAFN) On Monday, the European STOXX 600 index experienced a marginal decline of 0.1 percent, following robust gains the previous week driven by optimistic expectations of interest rate reductions. Despite reaching its highest level in four months during early trading, the index relinquished some ground, marking its third consecutive weekly gain on Friday.
The dip in the index was attributed to a 2.4 percent fall in shares of mining companies, impacted by the weakening of commodity prices. Copper prices, in particular, suffered due to the strengthening dollar. Additionally, energy Stocks saw a 1.6 percent decline, influenced by a drop in oil prices. This was exacerbated by the OPEC+ alliance's decision to cut supplies, coupled with uncertainties surrounding global fuel demand growth.
Investor attention this week is focused on significant data releases, including the Eurozone Purchasing Managers' Index, producer prices, retail sales, and gross domestic product. These indicators are crucial for gauging inflationary trends and economic expectations.
Nokia faced a setback with a 6.5 percent decline in its shares, prompted by market speculation suggesting that AT&T might remove the Finnish company from its list of vendors. On a positive note, Rolls-Royce and Proximus experienced gains of 3.1 percent and 1.0 percent, respectively, after J.P. Morgan upgraded the rating of both companies.
However, ASM International NV shares took a hit, falling by 6.4 percent and contributing to a 0.8 percent decline in the technology sector. The fluctuations in these stocks highlight the nuanced challenges and influences impacting the European market amid ongoing global economic uncertainties.
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