European Shares Subdued On Virus Worries

European Shares Subdued On Virus Worries

August 24, 2021

European stocks were broadly lower on Tuesday as a spike in COVID-19 cases in Asia and elsewhere raised fears of a slowdown in global economic growth.

Worries about tighter regulation in China and the fast-evolving situation in Afghanistan also dented sentiment.

The pan-European Stoxx Europe 600 was marginally lower at 473, falling for a second straight session after the index marked its longest winning streak in over a decade.

The German DAX slipped 0.2 percent and France’s CAC 40 index dropped 0.4 percent while the U.K.’s FTSE 100 traded flat with a positive bias after data showed the country’s unemployment rate dropped to 4.7 percent in the three months to June.

Swiss Life Holding declined 1.4 percent. The Swiss financial-services firm reported a fall in its premiums in the first half.

Dutch tech firm Prosus, which has a stake in Chinese tech giant Tencent, lost about 2 percent after Chinese regulators issued a lengthy set of draft rules for the internet sector, banning unfair competition and restricting the use of user data.

The rules published by the State Administration for Market Regulation (SAMR) cover a wide range of areas from prohibitions on the way companies can use data to stamping out fake product reviews.

Just Eat Takeaway.com rallied 3.5 percent. The online food ordering company said it has reached the peak of its absolute losses in the first half of 2021.

Danish jewelry maker Pandora was little changed after launching a new share buyback program.

BHP Group shares soared 6.7 percent. The miner posted its best annual profit in nearly a decade and confirmed the spin-off of its crude assets.

Commodity company Glencore fell about 1 percent after it acquired a stake in U.K. battery maker Britishvolt.

Pearson shares were down about 2 percent. The publishing and education company has agreed with the U.S. Securities and Exchange Commission to pay $1 million to settle charges for misleading investors about cyber breach.

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