Europe midday: Stocks edge lower after IMF trims growth forecasts
Cd Projekt Sa
27,500.00p
07:01 20/03/24
Stocks on the Continent were drifting slightly lower at the start of the week, as the International Monetary Fund trimmed its forecasts for global growth over the next two year.
Compagnie financiere Richemont SA
€0.00
07:46 20/03/24
In its twice yearly World Economic Outlook, the economic watchdog trimmed its forecasts for global growth in 2020 and 2021 by one and two tenths of a percentage point to 2.9% and 3.3%, respectively, on the back of lowered forecasts for India and of social turmoil in multiple emerging markets.
"The risk of protracted subpar global growth remains tangible despite tentative signs of stabilizing momentum," the IMF said.
"However, few signs of turning points are yet visible in global macroeconomic data."
Also weighing on investor sentiment, reports had surfaced of 200 confirmed cases of a new SARS-like pneumonia in China, including three deaths.
Against that backdrop, and amid lacklustre trading given the Martin Luther King holiday in the States, by 1328 GMT the benchmark Stoxx 600 was down by 0.08% to 424.24, the Cac-40 was off by 0.26% at 6,085.50 and the FTSE Mibtel was 0.43% lower to 24,038.27.
Germany's Dax on the other hand had turned around and was up by 0.12% to 13,542.63.
In parallel, front month Brent crude oil futures were up by 0.90% to $65.44 per barrel on the ICE.
That came alongside news that the Libyan National Army, led by General Khalifa Haftar, had blocked crude oil exports from the country's eastern half, which was expected to result in a near complete halt to production.
Looking out to later in the week, investors were waiting on a potentially key speech from the US President at Davos, Switzerland, on Tuesday, followed by an interest rate decision from the European Central Bank.
Dufry was at the bottom of the pile on the Stoxx 600 as investors moved to price-in the fallout for the duty-free shop operator from the outbreak of a new SARS like virus.
Luxury goodsmaker Richemont was also on the backfoot, giving back the previous session's gains, when it reported a 4.0% increase in third quarter sales.
Going the other way, Polish videogame maker CD Project gained as analysts at Credit Suisse that the five-month delay to the release of its Cyberpunk 2077 game would not have any long-term impact and might even enhance the game's value.
The Swiss broker therefore stood by its neutral recommendation and ZL 270.0 target price for the shares.
Stock in Qiagen, the German developer of assay technologies for molecular diagnostics, was extending the previous session's gains on the back of renewed rumours of a potential offer for the company.
ConvaTec shares were lower following a downgrade to 'underweight' out of JP Morgan.
The economic calendar was extraordinarily light at the start of the week.
In Franfkfurt, the Bundesbank forecast on Monday that the euro area's largest economy grew by just 0.6% in 2019, its slowest pace since 2013.
Also in Germany, the Federal Office of Statistics reported that factory gate prices fell at a year-on-year pace of 0.2% in December (consensus: 0.0%).