RTTNews - European stocks are likely to drift lower on Monday on the back of weaker commodity prices, extremely negative Asian cues and lower U.S. stock futures on renewed concerns about the pace of economic recovery. The London market will remain closed today for a bank holiday.
On the economic front, the average asking price of a new home in England and Wales was down 6.7 percent year-over-year in August, property data company Hometrack said on Monday. This marked the slowest rate of decline in 11 months. Prices were down an annual 7.7 percent in July. On a monthly basis, home prices inched up 0.1 percent for the first increase in 25 months following a flat reading in July.
Asian stock markets fell across the board on Monday with participants choosing to take profits after recent strong rallies. Some of the markets, including Japan, opened on a buoyant note but have faltered subsequently due to fairly heavy selling across the board. China's Shanghai Composite index is down nearly 6% to a three-month low on renewed concerns over a potential tightening of liquidity and apprehensions that banks will cut back on their lending.
On Friday, stocks on Wall Street gave up most of their initial gains and eventually ended the session on a mixed note after a weak U.S. consumer sentiment data released on Friday highlighted the difficulties facing an economic recovery.
Separately, the U.S. Commerce Department said that personal spending rose 0.2% in July compared to an upwardly revised 0.6% increase in the previous month. The modest increase came in line with economist estimates. The Dow ended lower by 0.4 and the S&P 500 index drifted down 0.2%, while the Nasdaq closed up 0.1%.
Oil prices surged to $73.52 a barrel in New York trading on Friday before ending the session off the highs at $72.74 a barrel, up $0.24 on the session. However, in Asian trading on Monday, crude oil prices fell modestly to $72.41a barrel amid weakness in equities across the Asia-Pacific region.
In corporate news, Bristol-Myers Squibb Co. said that the OASIS study group will present initial results of the CURRENT-OASIS 7 clinical trial at the European Society of Cardiology congress in Barcelona. Sanofi-Aventis and Bristol-Myers Squibb, co-commercialization and co-development partners for Plavix, were sponsors of the study.
Roche announced that the U.S. Food and Drug Administration, or FDA, has approved Valcyte, or valganciclovir hydrochloride, for the prevention of cytomegalovirus, or CMV, disease in pediatric kidney and heart transplant patients at high risk of developing CMV disease.
Discount carrier Air Berlin plc will meet the Vereinigung Cockpit pilots' union on Sept. 2 to discuss an improved pay offer to pilots and avoid a looming strike.
German fund manager HCI Capital AG's first-half loss widened to 36.1 million euros from 18.5 million euros in the year-ago period.
British Pharmaceutical company AstraZeneca plc Sunday said that a phase III head-to-head trial demonstrated that ticagrelor, or Brilinta, achieved greater efficacy in its primary endpoint of reduction in cardiovascular events over clopidogrel, or Plavix/Iscover, without an increase in major bleeding.
Cosmetics maker L'Oreal SA plans to expand in emerging markets like the Middle East and Africa to tap growth opportunities in the region, its Chief Executive Officer Jean-Paul Agon told Investir in an interview.
The European markets rose for the first time in three days on Friday, as mining stocks gained after copper prices climbed and technology stocks rallied after Dell reported better-than-expected earnings and Intel raised its revenue outlook.
The FTSEurofirst 300 index of pan-European blue chips closed 1.00% higher, while the narrower DJ Stoxx 50 index rose 0.72%. Around Europe, the U.K.'s FTSE 100 index rose 0.81%, France's CAC 40 index advanced 1.22% and Germany's DAX index added 0.86%.
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