LONDON – European equities began a slightly lower new trading week on Monday amid a pullback in world markets.
The pan-European Stoxx 600 fell 0.1% below the flat line during the first business, oil and gas stocks fell 1% to cause losses, while the technology sector rose 0.8 %.
European markets follow a dull tone set elsewhere over the night and last week; shares in Asia-Pacific traded mixed on Monday as investors in the region reacted to the latest Chinese growth data showing that its GDP rose 2.3% last year. This compares with economists ’expectations about GDP expansion at just over 2%. However, other data showed that retail sales in the country decreased, contracting by 3.9% during the year.
Meanwhile, US stocks fell on Friday to close a tough week as markets weighed on President-elect Joe Biden’s $ 1.9 trillion stimulus plan, along with recent gains from some of the largest banks. Americans. U.S. markets are closed Monday for holidays.
Biden’s proposal, called the American Rescue Plan, includes increasing the additional federal unemployment payments to $ 400 a week and extending them through September, paying $ 1,400 to many Americans, and extending federal moratoriums on evictions and foreclosures. until September.
The plan also provides for grants of $ 350 billion to state and local governments, $ 70 billion for Covid testing and vaccination programs, and raising the federal minimum wage to $ 15 per hour.
In Europe, the coronavirus pandemic and vaccine deployment continue to dominate headlines. The Netherlands saw several thousand people protest Sunday against the closure measures before being dispersed by riot police. Meanwhile, the UK continues to lead the pace in vaccine deployment; on Monday, it expands the program to offer a first dose of vaccine to anyone 70 years of age or older and to those who are considered clinically extremely vulnerable.
Stellantis starts trading and Carrefour runs out
In business news, the $ 52 billion merger between FCA, owner of Fiat Chrysler, and PSA Group, owner of Peugeot, was completed over the weekend, creating the world’s fourth-largest vehicle manufacturer by volume. The new company, called Stellantis, will be headed by former PSA CEO Carlos Tavares. On Monday, Stellantis shares gained 2.8% at the start of trading.
Carrefour shares fell more than 7% in early business after Canada’s Alimentation Couche-Tard withdrew its takeover bid for Europe’s largest retailer.
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– Fred Imbert, Jesse Pound and CNBC’s Eustance Huang contributed to this report.