European Stocks Plunged on GDP Numbers and Quarantine Move
European stock futures plunged once again in Monday trading as data shows that Eurozone GDP dropped sharply by 12% for the second quarter, representing the largest decline since 1995.
The stock market investors have also highlighted concerns over the UK’s move of adding more countries to the travel quarantine list. The move has strongly impacted travel and leisure stocks. Any traveler who arrived from countries including France, Malta, Netherlands, Aruba, Monaco, and the Turks and Caicos Islands are now required to self-isolate for fourteen days.
The Euro Stoxx 50 plunged more than 1.6% on Friday and extended the downside momentum into Monday trading. London’s benchmark FTSE 100 slid almost 1.9% after adding more countries to the travel quarantine list.
“Weighing heavily on the European travel industry, the UK’s latest restrictions contributed to a moody open for the continent’s markets and the FTSE continued to unwind its hard-to-justify post-recession reveal gains,” said Connor Campbell, a financial analyst at SpreadEx.
The investor’s sentiments are also hit by Chinese retail sales data. The world’s second-largest economy reported a retail sales decline of 1.1% in the past month. This represents the seventh straight month of decline. Meanwhile, industrial production remained robust in July. The country’s industrial production surged 4.8% in July from the year-ago period.
“China was first into the coronavirus crisis and arguably one of the first to come out of its first phase, so the fragile nature of its recovery offers an uncomfortable view of the future for other countries,” said AJ Bell investment director Russ Mould.
What Does it Mean for Traders?
- European stock futures are in red.
- US stock futures are in green.
- The gold price tumbled slightly and crude oil price jumped.
- After losing 93 levels on Friday, the USD index increased slightly on Monday.
- Euro remains strong against USD and British Pound.