|
Become a member
European stock indexes fell on Friday as worries over troubled property developer China Evergrande and weak German business confidence data prompted investors to lock in some gains after a midweek rally.
European sportswear makers Adidas, Puma and JD Sports fell about 3% each after US rival Nike lowered its sales expectations for fiscal 2022 and predicted delays during the holiday shopping season due to a supply chain crisis.
Retail stocks fell the most in Europe, falling 1.5%, while the regional STOXX 600 fell 0.8%, according to reports from Exness Forex Broker. But the three-day rally put the index on a small weekly gain.
"Stocks rose to take a pause this morning in the face of a likely default by Evergrande," said Sebastian Gali, senior macro strategist at Nordea Asset Management.
Investor concerns about Evergrande resurfaced as the $83.5 million bond interest payment deadline passed without comment from the company, bringing it closer to a potential default.
Meanwhile, an Ifo Institute study showed that German business morale fell for the third consecutive month in September due to supply chain problems that are causing a "bottleneck" for manufacturers in Europe's biggest economy.
Germany's DAX fell 0.8% ahead of a weekend when the country will vote for German Chancellor Angela Merkel's successor.
The latest poll showed support for the conservative CDU/CSU alliance, while the Social Democrats are clinging to their lead.
"While there is a lot of buzz around the results, possible coalition changes are a maze and will almost certainly not be clarified on Monday or next week," said Geoffrey Halley, senior market analyst at OANDA.
"The election could be favourable because of some intraday volatility in the euro on Monday morning."
The benchmark STOXX 600 index is poised to end September in the negative after seven consecutive months of gains, as rising energy prices and supply chain bottlenecks have heightened inflation fears, while major central banks plan to cut stimulus measures in a pandemic.
But European Central Bank President Christine Lagarde told CNBC that many of the factors contributing to the recent spike in inflation in the euro zone were temporary and could disappear next year.
Shares in UK drugmaker AstraZeneca jumped 2.6% after the company said its cancer drug Lynparza hit its main target in late-stage trials.
Italy's utilities Enel and Eni inched higher after the government allocated more than 3 billion euros ($3.5 billion) to curb a sharp increase in retail electricity bills.
| 
