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European Stocks Start Week With Decline Amid Growth Concerns

Ksenia Galouchko
European Stocks Start Week With Decline Amid Growth Concerns

(Bloomberg) -- European stocks opened lower as almost all the sectors slumped amid concerns about global and regional economic growth and as investors continued to book profit on gains at the end of the quarter.

The Stoxx Europe 600 Index declined 0.7 percent. The FTSE 100 Index retreated 0.5 percent as Prime Minister Theresa May is hoping for one more chance to put the divorce agreement she’s negotiated with the European Union to a vote in the House of Commons this week. Oil stocks, including BP, fell, as Brent retreated.

European equities have enjoyed a stellar start to the year, boosted by optimism on the dovish central banks and on a possible U.S.-China trade deal. However, slowing economic data and muted earnings growth are spurring concerns among investors and strategists whether this rally can continue. A closely watched gauge of U.S. Treasuries inverted for the first time since 2007, a signal a recession may be coming in the world’s largest economy.

“The eurozone is clearly struggling given the gloomy economic reports on Friday,” said David Madden, a market analyst at CMC Markets UK. “Brexit will remain in focus as the EU granted Theresa May the extension she requested."

To contact the reporter on this story: Ksenia Galouchko in London at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Blaise Robinson at brobinson58@bloomberg.net

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