EU stock markets built on last week’s sell-off, Monday hit their 15-month low, as investors kept dumping risky assets, including equities.
The Stoxx Europe 600 Index sagged to 318.12 or 2.4%. It found itself on track for the lowest close since October 2014.
Germany’s DAX 30 index dropped to 9,028.19, thus losing 2.8%, while France’s CAC 40 index dipped to 4,091.50, being deprived of 2.6%. The British FTSE 100 index dived to 5,732.65, lacking 2%.
Considering the absence of major data releases and central bank events on Monday, the vast majority of investors stuck to the last week’s negative sentiment, when pan-European benchmark demonstrated a 4.8% weekly dip. That week gave rather a disappointing headline reading on American nonfarm payrolls, continued jitters in the commodity markets and a hit for EU exporters from a stronger euro.
The overall sentiment is still downbeat due to growing concerns regarding the global economy, which doesn’t seem healthy at the moment. Other concerns include struggling American economy and China’s slowing growth. Furthermore, oil prices have appeared to be unable to extend their recent gains. It feels like oil traders are still discouraged by a stronger greenback and the lack of any progress in negotiations between non-OPEC and OPEC producers.