European stocks dropped for a seventh day, heading for their longest losing streak since 2018, as economic data from Germany further added to worries over the state of Europe’s biggest economy.
The Stoxx Europe 600 Index fell 0.4% in London by 8:23 a.m., with nearly of the region’s subindexes declining. Technology and basic resources sectors saw the biggest declines, while construction and materials fell less than the wider benchmark.
Tech stocks slipped after China looked to expand a ban on the use of Apple’s iPhones in sensitive departments to government-backed agencies and state companies. Apple suppliers such as STMicroelectronics NV fell in response to the news.
Germany’s industrial output fell again in July, according to the statistics office in Wiesbaden, further holding back the biggest economy in Europe and casting a pall over the beginning of the third quarter. Production fell 0.8% from June, led by capital and consumer goods, outpacing the median prediction in a Bloomberg survey of economists of a 0.4% drop.
Investors also awaited data on gross domestic product growth in the European Union. Meanwhile, signals of China’s trade slump easing in August did little to help European stocks escape another day of declines.
“This morning’s trade numbers for August did show an improvement on the July figures but given how poor these were it was a low bar,” said Michael Hewson, chief market analyst at CMC Markets. “While this is encouraging, demand for Chinese goods was still weak from an international, as well as domestic perspective,” Hewson added.
Among single stocks, Smurfit Kappa Group plc fell after confirming that it was in talks with WestRock Co. to merge businesses, potentially creating an industry giant with a market value of around $20 billion. London Stock Exchange Group plc dropped after a consortium of investors including Blackstone Inc. and Thomson Reuters Corp. raised around £2 billion by offloading shares in the company.
Source from: Bloomberg