LONDON – European equities started the new trading week slightly lower on Monday amid a downturn in global markets.
The pan-European Stoxx 600 fell 0.1% below the flatline in early trading, oil and gas stocks lost 1% to bear losses, while the technology sector climbed 0.8%.
European markets are following a lackluster tone that has been set overnight elsewhere and last week; Asia-Pacific stocks traded mixed on Monday as investors in the region reacted to the latest Chinese growth data showing GDP rose 2.3% last year. That compares with economists’ expectations for GDP growth of just over 2%. However, other data showed that retail sales in the country fell, to 3.9% for the year.
Meanwhile, US stocks fell on Friday to end a tough week as markets weighed in on President-elect Joe Biden’s $ 1.9 trillion stimulus plan along with the latest gains from some of the largest US banks. Markets in the US are closed on Mondays due to a public holiday.
Biden’s proposal, called the American Rescue Plan, includes increasing federal unemployment benefits to $ 400 a week and extending them through September, making direct payments to many Americans of $ 1,400, and extending federal moratoria on evictions and executions up to and including September.
The plan also calls for $ 350 billion in assistance from state and local governments, $ 70 billion for Covid testing and vaccination programs, and raising the federal minimum wage to $ 15 an hour.
In Europe, the coronavirus pandemic and the roll-out of vaccinations continue to dominate headlines. The Netherlands saw several thousand people protesting against lockdown measures on Sunday before they were distributed by riot police. Meanwhile, the UK remains at the forefront of vaccine rollout; On Monday, it is expanding its program to offer a first dose of the vaccine to anyone aged 70 and older, and to those considered to be clinically extremely vulnerable.
Stellantis starts trading, Carrefour agrees
In company news, the $ 52 billion merger between Fiat Chrysler owner FCA and Peugeot owner PSA Group was finalized last weekend, creating the world’s fourth largest automaker by volume. The new company, called Stellantis, will be led by former PSA CEO Carlos Tavares. Stellantis shares were up 2.8% during early trading Monday.
Shares of Carrefour fell more than 7% in early trading after Canadian Alimentation Couche-Tard dropped its takeover bid for Europe’s largest retailer.
Subscribe to CNBC PRO for exclusive insights and analysis, and live programming of working days from around the world.
– CNBC’s Fred Imbert, Jesse Pound and Eustance Huang contributed to this report.