The European stock market fell today as a jump in inflation raised tensions over a possible shift in monetary policy, but despite that, it ended the month with gains of about 2%, supported by strong quarterly earnings for companies and optimism for an economic recovery.
The pan-European Stoxx 600 index closed down 0.4% but posted its seventh straight month of gains, its best monthly streak since 2013.
The technology sector, the best performer in August, came with a 6% rise, supported by strong profits for a few companies, while an increase in global infections with Covid 19 also prompted investors to buy shares of sectors that are more resilient to the pandemic.
European shares gave back their initial gains after data showed that euro zone inflation jumped to a 10-year high in August and that further increases expected are likely to challenge the European Central Bank’s moderate view on price growth.
Shares of basic resources companies were the top losers in August, falling 4.2%, as sharp fluctuations in metal prices prompted investors to withdraw from the sector, which has shown a good performance since the beginning of the year.
Travel and leisure stocks fell 0.7% after European Union governments agreed to remove the United States from the bloc’s list of safe travels.
Analysts expect European stocks to consolidate around their current record levels for the remainder of 2021 supported by solid corporate earnings, but say worries about US monetary policy tightening, Germany’s elections and a tough Chinese regulatory crackdown will limit gains.
To that, the decline in technology shares pressured “Wall Street” at the opening yesterday, while the main indices are heading to record gains for another month, following the lenient stance of the Federal Reserve on massive asset purchases.
The Dow Jones Industrial Average fell 8.46 points, or 0.02%, to 35,391.38 points.
The Standard & Poor’s 500 Index increased 0.96 points, or 0.02%, to 4529.75 points.
The Nasdaq Composite Index lost 3.01 points, or 0.02%, to 15,262.88 points.
Follow the economic statement via Google News
These were the details of the news European stocks post seventh month of gains for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.