Solid Gold Berjangka – European stock markets opened lower on Monday, weighed down by a wave of major demonstrations in France that dampened investor sentiment. The STOXX 50 index fell 0.7%, while the STOXX 600 index declined 0.6%. Protests also spread to several major cities in Belgium, Italy, and Portugal, heightening uncertainty across the regional market.
Market pressure was compounded by persistently high oil prices, despite a slight correction early in the week. Brent crude continued to trade above US$107 per barrel, fueling concerns regarding inflation and the operating costs for European companies.
The travel and leisure sector saw some of the sharpest declines, followed by automotive manufacturers and the banking sector. Energy stocks also weakened, with the French market experiencing the most significant pressure amid growing concerns over the impact of the demonstrations on economic activity.
Several major stocks saw corrections, including HSBC (-1.3%), Siemens (-1.1%), L'Oreal (-1%), Banco Santander (-1.4%), LVMH (-2%), Inditex (-1.1%), Schneider Electric (-1.7%), and Airbus (-1.9%). Stellantis dropped 3.4%, and Carrefour fell 3.1%, ranking among the weakest performers.
Amid the broad-based decline, ASML bucked the trend, rising 1.2%. Nevertheless, overall market sentiment remains clouded by social unrest, high energy costs, and inflationary risks. Investors will continue to monitor developments regarding the demonstrations and the trajectory of oil prices to gauge whether the pressure on European markets is likely to persist. (srh)