Europe midday: Shares in downbeat mood as investors eye busy week
European stocks were still lower at midday after regulatory worries hit Asian markets and ahead of a busy week for corporate earnings and economic data.
The pan-European Stoxx 600 index was down 0.35% with all major regional bourses following suit. Investors were preparing for a deluge of corporate earnings in Europe and the US, providing a snapshot of the strength of any recovery from the Covid pandemic.
US second-quarter GDP figures are also due out later this week along with a two-day meeting of the Federal Reserve.
In Germany, an Ifo institute survey showed business morale fell unexpectedly in July on continuing supply chain worries and amid rising coronavirus infections.
"European markets have kicked off the week on a somewhat downbeat tone, with mainland European markets in particular leading those losses. That comes fresh off the back of a rather dramatic session in Asia, where the implementation of fresh regulatory crackdown from central government put further pressure on tech and education stocks," said I analyst Joshua Mahony.
"Coming off the back of a record high close for the S&P 500, we have seen some of that positivity fade as we start a week that provide a whole host of volatility drivers including inflation, GDP and the FOMC announcements."
In equity news, Porsche slid as the stock went ex-dividend, while French car parts maker Faurecia slipped 4.27% despite raising its 2021 net cash flow target.
Dutch technology investor Prosus, which has a 28.9% stake in Chinese internet giant Tencent, fell 8.54% to the bottom of the Stoxx after Beijing intensified its regulatory crackdown on Tencent.
Meanwhile, Europe’s largest low-cost carrier Ryanair was up 4% as it lifted full-year traffic forecasts on strong summer bookings. Shares in budget rival easyJet also rose.
Spanish pharmaceuticals company Almirall fell 7.6% after it posted a first-half net loss of €42.8m.