European equity markets extended losses in today’s trading session due to some profit taking. The CAC, DAX, IBEX and London benchmark index retreated sharply between 0.65% and 1.25%. However, the euro managed to remain in the positive territory, consolidating around 1.36 against the US dollar.
On the macroeconomic front, German industrial orders fell sharply by 1.8% against expectations of remaining flat in May. Eurozone’s Sentix index rose to 10.1 in June compared to 8.32 in May, offering further support to the European currency.
In the US, employment trends were reported at 119.62 in June, beating analysts’ expectations. However, both the Dow Jones and S&P 500 reversed from recent gains and slid lower today after the long holiday weekend.
According to Thomson Reuters, IMF Chief Christine Lagarde reported over the weekend that global economic activity should strengthen in the second half of 2014 and possibly accelerate in 2015. However, she said that momentum could be weaker than initially expected.
In London, the index fell sharply from a three-week high dragged lower by banks and mining stocks amid concerns about the pace of the economic growth. Standard Chartered, Barclays, Lloyds, HSBC and RBS retreated between 0.5% and 1.5%.
Energy stocks also posted heavy losses as crude oil prices continue to remain under pressure with Brent front month futures currently trading around $110 per barrel. Tullow Oil, BG Group and BP plunged between 1.2% and 3.2%.