Stock indicators of the European region showed a significant decline in Monday's trading. The combined index of the STOXX Europe 600 region fell by 1.81%. The French CAC 40 decreased more than others (by 2.02%). The German DAX indicator fell by 1.54%, and the British FTSE 100 indicator - by 1.88%. The Italian FTSE MIB showed a slightly smaller drop (by 1.53%), and the Spanish IBEX 35 declined less than others - by 0.9%.
All world markets are experiencing a period of decline and sell-offs, which in turn may indicate an even greater decline in the future.
Traders are unwilling to take risks due to the uncertainties caused by geopolitical tensions and the next wave of rising coronavirus incidence in Asia. Investors are also concerned about the tightening of monetary policy pursued by central banks around the world to combat rising inflation.
All this affects the global economy. In particular, in Europe, there is a strong decline in the energy (-4.8%) and metallurgical (-6%) sectors of the economy. The price of oil decreased by 6% during trading, and copper – by 3%. The value of securities of many companies in these areas showed a significant decrease: Glencore by 5.6%, ArcelorMittal - by 8.8%, Anglo American - by 6.9%, BHP - by 6.3%, BP - by 6.2%, Shell - by 5.6%, Eni - 4.8%.
In Germany, there is an increase in the indicator of entrepreneurs' confidence in the economy. This indicator has risen this month to 91.8 points from March's 90.8 points. At the same time, analysts predicted a further decline in this indicator (to 89.1 points), and not its growth.
Meanwhile, the corporate reporting season continues to have an impact on the growth or fall in the prices of securities of the reporting companies.
Thus, due to the receipt of a net loss by Royal Philips NV for the first quarter and even with a 2% increase in revenue, its stock quotes decreased by 11% at once.
Despite the growth of Roche Holding AG's revenues by 10%, which exceeded experts' forecasts, the price of its securities decreased by 1.2%. The company is also preparing to reduce the pace of sales of COVID-19 tests and other pandemic-related products this year for a total of 2 billion Swiss francs.
Vivendi SE managed to increase revenues in the first quarter by 13.4%, thanks to which the price of its shares increased by 0.4%. Analysts attribute the increase in revenue to the growth of the advertising and television divisions.
Credit Suisse Group AG is living through a crisis period. The value of its securities decreased by 3.4%. To change the situation, the management is looking for a new CFO, as well as a lawyer and the head of the Asian division.
Some of the companies based on which the STOXX Europe 600 index is calculated to have noted a significant drop in the value of securities. Among them were Philips, as well as Norsk Hydro, which fell by 8.55% each, and Boliden AB, which lost 7.4%.
At the same time, the shares of other companies registered a significant increase: THG Plc - by 9.8%, Ubisoft Entertainment - by 9.5%.
The value of Ubisoft Entertainment's securities jumped thanks to the interest in it from Blackstone Inc., KKR & Co., and other investors.
