Europe is retreating again from its long winning streak, as fears persist that the European economy is losing momentum. In yesterday’s session, prices fell in an all-around down day across the region. However, Italian stocks managed to slightly gain ground, and outperformed the major pan-European indices, reports TechCrunch Europe.
Ahead of the day’s European trading session, the Stoxx Europe 600 index was down 1.4% by the time markets closed, pushed lower by deteriorating economic data across the Eurozone. Growth data out of France and Germany both showed slower than expected improvements, while industrial production in the United Kingdom also clocked in below consensus expectations.
German GDP Growth Slowed Down to Just 0.1% in Q1
Germany grew by just 0.1% in the first quarter of the year, despite expectations for 2.6% growth. In the broader Eurozone, growth came in at 0.3% in the first quarter of the year. Growth was weighed down by a 2.2% contraction in French GDP, as the French economy still struggles to rebound from the negative effects of last year’s strikes.
Peripheral Europe also fared badly, with Italy having some of the worst performing major markets, as peripheral economies slow the progress of their respective economic recoveries.
Stock markets, or rather a very small number of stocks, were performing well in Asia overnight, after strong Asian economic data eased concerns that the global economy is slowing down.
Cognizant Communications was one of the brightest spots in the market, after the company made strides to expand its business in China. Price and volume had been well above the 200-day moving average up until yesterday. Yesterday marked its lowest price since May 2018.
Energy and Materials contracts continue to be among the best performing contracts in the market, helped by lower oil prices as the market awaits more important US economic data releases today and tomorrow.