European equities remain under pressure

Monday, July 21, 2014

European equity markets came under renewed pressure today, due to the absence of risk appetite as tensions between Russia and the West continue. The CAC, DAX, BEX and the London market retreated between 0.3% and 1.1%, while the euro traded within the recent range of 1.352 against the USD.

DAX Index

DAX Index (Deutsche Boerse AG Ge 2014-07-21 17-26-00

Banks and mining stocks posted heavy losses today in London. Standard Chartered, HSBC, Barclays and Lloyds slid lower between 0.35% and 1.13%.

On the other hand, Tesco edged higher and climbed 1.28% in today’s session following news of an imminent departure of its current CEO Phillip Clarke, which overshadowed the possible impact of another profit warning and further rating downgrades. Tesco reported that trading conditions have deteriorated since its Q1 2014 update. Dave Lewis, Unilever’s well-respected executive will be appointed as the new Tesco’s CEO in October. Unilever also climbed higher by 0.4% in today’s trading session. 

Precious metal prices rebounded as investors look for a “safe-heaven”. Gold edged higher toward $1,315, while Silver rallied toward $21.  

XAU- Gold Spot

XAU Curncy (Gold Spot   $_Oz )  D 2014-07-21 17-25-25

XAG- Silver Spot

XAG Curncy (Silver Spot  $_Oz )  2014-07-21 17-25-47

This week, investors will be keeping an eye on the releases of the US housing and durable goods data. As the recent US housing starts and building permits indicators were fairly disappointing, attention will turn to existing and new home sales figures.

 

More from: Myrto Sokou