European markets were firmly in the red on Monday as car manufacturers were among the notable fallers. Fiat owner Stellantis and Aston Martin both saw shares fall sharply after warning over weaker profits amid pressure from cheaper rivals in China. In London, wider economic sentiment was dented by confirmed economic growth data for the second quarter.
UK gross domestic product (GDP) grew by less than expected between April and June, according to revised figures from the Office for National Statistics (ONS). The FTSE 100 finished 83.81 points, or 1.
01%, lower to end the day at 8,236.95. Dan Coatsworth, investment analyst at AJ Bell, said: “It’s remarkable how sentiment can swiftly change direction on the markets.
“After last week’s strong showing led by Chinese stimulus measures, US and European markets were in retreat at the start of the new trading week. “The FTSE 100 was subject to a widespread sell-off, with only a handful of names making any decent headway, including BP and Hikma Pharmaceuticals.” Across the Channel, the other main indexes took their cues from a weaker start to trading in China this week.
The Cac 40 ended 2% lower for the day and the Dax index was down 0.68% at the close. Meanwhile, sterling made gains against the dollar amid increased predictions that the Federal Reserve will cut US interest rates further.
The pound was up 0.2% at 1.340 US dollars, and up 0.
41% at 1.202 euros. In company news, Aston Martin was among the heaviest fallers in Lo.
