European equity markets opened the week on the negative note, as risk appetite remained limited. The CAC, DAX, IBEX and London equity benchmark retreated between 0.3% and 0.9%, while the euro was under pressure around 1.283 against the dollar.
Tesco plunged more than 11% in today’s trading session to hit the lowest level in more than a decade after overstating its first-half profit estimate by around 250 million pounds. Tesco reported that it started a probe of accounting practices and suspended four executives including its UK Chief according to Bloomberg.
Crude oil prices and base metals remained under pressure in today’s trading session. Brent front month futures retreated sharply more than 1.4% to retest $97 per barrel as bearish oil fundamentals weighed heavily on market sentiment, while the WTI front month contract breached below $92 per barrel, heading towards $91.50.
Copper plunged more than 1.8% at the time of writing, heading towards $6,700, while Nickel overreacted after retreating more than 3% to retest 17,200. Precious metals also traded lower as Silver fell below $18, while Gold traded near $1200/per ounce.
On the macroeconomic front, we received fairly disappointing US economic data which added further pressure to equity and commodity markets. US existing home sales declined by 1.8% in August against analysts’ expectations of a 1% increase. In addition, Chicago Fed National activity index fell to -0.21 in August, missing estimates of +0.33.