European stocks end a four-week winning streak
60 Degrees Pharmaceuticals, Inc. SXTP | 0.00 | |
ArcelorMittal SA ADR MT | 0.00 | |
Vodafone Group Public Limited Company Sponsored ADR VOD | 0.00 | |
ASML Holding NV ADR ASML | 0.00 | |
ProShares Ultra MSCI Japan EZJ | 0.00 |
July 10 (Reuters) - European shares ended a four-week winning streak on Friday, weighed down by a decline in technology stocks and renewed tensions in the Middle East that caused volatility in oil markets.
The pan-European STOXX 600 index fell 1.8% over the week, as investors reduced their bets on a near-term easing of the energy supply crisis. The United States and Iran traded blows, while Washington reimposed sanctions on Iranian oil.
The NATO summit, hosted by Turkey, added to the uncertainty after US President Donald Trump described Spain as a "bad partner" and threatened to halt trade with it, before later softening his tone.
Overall, the week's developments highlighted that geopolitical risks remain an important factor influencing investor confidence.
“There was a kind of complacency that the war was no longer a problem,” said Marta Norton, investment analyst at Empower Investments. “We were reminded this week that, in fact, it still is a problem.”
The markets are now turning their attention to the corporate earnings season, hoping it will refocus on fundamentals and give stocks new momentum.
The technology sector index fell 1.3 percent on Friday and 1.8 percent over the week. Shares of Swetec dropped 5.9 percent and ASML shares fell 2.1 percent during the day.
Shares in telecom companies rose 1.3 percent, driven by a 12.6 percent jump in Vodafone shares after Emirates Telecommunications Group E.And announced it would sell its stake in the company to the family group of French billionaire Xavier Niel.
Shares in the travel and leisure sector rose 1 percent, with airline stocks surging. British carrier easyJet's shares jumped 14.3 percent after it agreed in principle to a £5.7 billion ($7.65 billion) takeover bid from Apollo Global.
Shares in British wealth management firm St. James's Place were the worst performers on the Stoxx 600 index, falling 8.5 percent after a report that Sovereign Wealth, one of the firm's biggest partners, was considering ending its relationship with the group.
In contrast, shares of both Voestalpen and Salzgeter jumped by more than six percent, after the brokerage firm upgraded the ratings of the two stocks.
Ryanair shares closed up 0.9 percent, after paring gains of as much as 2.9 percent during the session.
Volkswagen shares fell for the third consecutive session. Two sources within the company told Reuters that labor representatives, who wield considerable influence within the company, had blocked a comprehensive restructuring plan.
The German automaker also announced on Friday that its global car sales fell 8.6 percent in the second quarter, the biggest quarterly decline in four years.
