Written by Peter Norse
Investing.com – European stock markets were flat on Monday after recent losses, but concerns remain about a worsening economic outlook and increasing political uncertainty.
By 04:05 ET (08:05 GMT), trading in Germany was up 0.1%, in France it was up 0.1% and the British one rose by 0.2%.
European stocks have been under pressure, with a drop of more than 22% so far, as investors worry about the toxic mix of high inflation, aggressive monetary tightening, an escalating energy crisis and the economic consequences of the Russo-Ukrainian war.
Dismal business data from the eurozone and the UK last week heightened fears of a regional recession, and investors will look to the September release later in the session for more clues to business sentiment in the eurozone’s largest economy.
Investors are also digesting the victory of a right-wing bloc led by Italy in Sunday’s parliamentary elections.
Meloni, who is set to become Italy’s first female leader, has played down her party’s post-fascist roots, and the country’s benchmark stock index rose 1.5% as local investors cheered the result given her broadly pro-business agenda.
Elsewhere, global tension over the war in Ukraine is rising, with Russia conducting widespread criticism aimed at forcibly annexing territories it has occupied.
The drop fell to an all-time low against the US dollar as traders questioned the sustainability of the new British government’s economic plan, in the wake of new British Finance Minister Kwasi Quarting unveiling the country’s largest package of tax cuts in 50 years.
In corporate news, Unilever LON: (LON 🙂 stock rose 2% after the consumer goods giant announced that CEO Alan Jope will retire at the end of next year.
Iberdrola (BME 🙂 Shares in (BME:) fell 1.3% after the Spanish press reported the hiring of the electric company Barclays (LON 🙂 to sell up to 49% of the Spanish renewable energy projects group.
Oil prices fell on Monday, retreating to levels not seen since early January, weighed down by a stronger US dollar and fears that slowing global economic activity could dampen demand for crude.
The US dollar, which measures the greenback against a basket of six other currencies, rose to a 20-year high on Monday, making all dollar-denominated commodities, including oil, more expensive for foreign buyers.
By 04:05 ET (08:05 GMT), the futures contract was down 0.6% at $78.28 a barrel, while the contract was down 0.7% at $84.40. Both contracts fell about 5% on Friday, falling to their lowest level in eight months.
In addition, it was down 0.2% at $1,653.35 an ounce, while trading was down 0.1% at 0.9685.