Crowds of shoppers and visitors out on Oxford Street on 28th August 2024 in London, United Kingdom.
Mike Kemp | In Pictures | Getty Images
LONDON — European stocks closed lower Tuesday, continuing a lackluster start to September trading.
The pan-European Stoxx 600 index provisionally ended down 1%, with all major bourses and the majority of sectors in the red. Mining stocks shed 3.28% and tech stocks lost 2.23%, while food and beverages were a rare outlier, adding 0.09%.
Shares of French cable manufacturer Nexans jumped over 8% to hit an all-time high following reports that an agreement in principle had been reached for a major submarine power cable between Greece and Cyprus for which it won the contract, according to Reuters. Shares pared some gains to end the day around 4.5% higher.
It comes after U.S. stocks also slipped in the first trading day of the month, as traders returned from the Labor Day holiday and braced themselves for a potentially tough September following a strong but volatile August. Two readings of manufacturing production, published Tuesday, showed signs of weakness, pulling markets lower amid renewed fears of an economic slowdown.
A slew of U.S. data is due this week, including the purchasing managers’ index, factory orders, jobless claims, nonfarm payrolls and the unemployment rate.
Stoxx 600 index.
In Europe, data released by the British Retail Consortium showed total U.K. sales were up 1% year on year in August — a moderation from 4.1% growth in the same month of 2023. Food sales were up 2.9% annually in the three months to August, as non-food sales dropped 1.7%.
“Despite summer finally making an appearance, and a slight uptick in consumer confidence, shoppers did not catch-up their spending during August, with total sales growth of only 1% reflecting the challenging retail environment that is likely to dominate for the rest of this year,” said Linda Ellett, U.K. head of consumer, retail and leisure at KPMG.
“Consumer sentiment is gradually starting to improve, but there still remains some nervousness around potential tax rises and the cost of putting the heating back on when the cooler weather arrives.”
The Office for National Statistics, meanwhile, said the number of mergers and acquisitions in the U.K. fell from 463 to 385 between the first and second quarter.
Grant Fitzner, chief economist at the ONS, told CNBC’s “Street Signs Europe” that lower interest rates and the uptick in U.K. economic growth this year should create a “more conducive environment to foreign investment mergers and acquisitions.”
“I think what’s distinct in the last couple of years versus pre-pandemic, is, in recent years, we haven’t seen those really big M&As that we have seen on occasion in the past,” Fitzner said.
