Outlook For Interest Rates Weighs On European Markets

(RTTNews) - The major European stock markets were down again on Monday, extending losses from the previous session as traders continue to be nervous about the outlook for interest rates, both a home and across the pond.

Bond yields surged across Europe after a top ECB official said more tightening is needed even if Europe's economy tips into recession. And traders have already priced in a 75-basis point Fed rate hike in September, taking the rate to a range of 3.75 to 4 percent by the end of the year.

Energy security fears also weighed as Russia's Gazprom starts maintenance on Nord Stream on Wednesday for three days.

For the day, Germany's DAX was down 78.48 points or 0.61 percent to finish at 12,892.99 and the CAC 40 in France slipped 51.98 points or 0.83 percent to end at 6,222.28. The FTSE in London was closed for a bank holiday.

In Germany, Bayer plummeted 4.90 percent, while Heidelberg Cement jumped 3.33 percent, Covestro rallied 2.93 percent, Infineon Technologies tumbled 2.92 percent, RWE retreated 2.20 percent, Continental climbed 1.99 percent, Deutsche Post slumped 1.22 percent, Volkswagen improved 1.18 percent, Deutsche Bank collected 0.87 percent, Siemens shed 0.66 percent, Deutsche Telekom added 0.51 percent, Daimler Truck gained 0.45 percent and Deutsche Borse eased 0.06 percent.

In France, ENGIE plunged 4.33 percent, while Accor dropped 2.08 percent, Sodexo sank 2.05 percent, L'Oreal declined 1.67 percent, Veolia Environment stumbled 0.97 percent, Societe Generale gained 0.81 percent, Sanofi slid 0.59 percent, Compagnie de Saint-Gobain lost 0.58 percent, Vivendi and BNP Paribas both fell 0.20 percent and Credit Agricole dipped 0.01 percent.

In economic news, Sweden's economy expanded less than initially estimated in the second quarter, while retail sales declined for the third straight month in July, figures from Statistics Sweden showed on Monday. Gross domestic product advanced 0.9 percent sequentially in the June quarter, following a revised 0.2 percent rise in the March quarter. The second quarter figure was revised down from a 1.4 percent increase reported initially on July 28. According to the initial estimate, GDP logged a 0.8 percent contraction in the first quarter.

Ireland's retail sales decreased for the third successive month in July, data from the Central Statistics Office showed on Monday. The volume of retail sales dropped 1.6 percent month-on-month in July, the same rate of fall as in the previous two months.

Finland's consumer confidence improved for the first time in three months in August, while industrial sentiment continued its falling trend, separate survey results showed on Monday. The consumer confidence index rose to -14.9 in August from -15.9 in July, which was the lowest seen in the entire measuring history, Statistics Finland said.

Austria's manufacturing sector entered the contraction zone in August for the first time in over two years, survey results from S&P Global showed on Monday. The UniCredit Bank manufacturing Purchasing Managers' Index dropped to 48.8 in August from 51.7 in July. The index reached the sub-50 contraction territory for the first time since June 2020.