European equities started the week on the negative side

Monday, December 02, 2013

European equity markets retreated on Monday, tracking losses in Asia and Wall Street despite the fairly robust PMI manufacturing data from the US and Eurozone, which failed to provide any support to the markets. CAC, DAX and IBEX ended lower on the day, while London also retreated by 55.24 points (-0.83%). 

Mining stocks dragged the London equity market lower following weaker base metals prices. Fresnillo, Randgold and Anglo American fell sharply between 4.15% and 8.76% as precious metals prices plunged. Vedanta, BHP Billiton, Antofagasta and Glencore also fell between 1.2% and 2.88%.

In addition, Tesco also fell by 2%, following a downgrade from HSBC to “underweight” ahead of a trading update later this week. Goldman Sachs also lowered its third quarter earnings estimates for the company. 

This week’s focus will be on the US non-farm payrolls report on Friday that could provide a better insight on US employment conditions. In addition, the Fed’s Beige Book could give further momentum to equity and commodity markets amid views about QE taper timing.

 

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