Weak China data halts winning streak for European stocks

[LONDON]

A 10-day run of gains for European stocks came to a halt on Monday, following a surprise slowdown in China's economic indicators, with commodity-linked stocks falling the most.

The pan-European STOXX 600 index fell 0.5 per cent in early trading, easing from record levels last week.

Oil stocks and miners fell about 1.5 per cent each, as commodity prices took a hit after Chinese data raised concerns about faltering demand in the world's major consumer of metals and oil.

Data showed China's factory output and retail sales growth slowed sharply and missed expectations in July as new Covid-19 outbreaks and floods disrupted business operations.

In individual stocks, French car parts supplier Faurecia jumped 6.5 per cent after it agreed to acquire a majority stake in German automotive lighting group Hella, trumping rival bidders with a 6.7 billion euro (S$10.7 billion) deal. Hella, whose shares hit a record high last week on anticipation of a deal, slipped 1.9 per cent.

Lufthansa fell 4.4 per cent after a German finance agency said it plans to sell up to a quarter of its 20 per cent stake in the airline over the next few weeks.

REUTERS