European stocks traded in the red zone after a long period of growth since the terrorist attack in France put pressure on shares of tourist agencies. The negative impact on the market also had a weak financial statements of some companies in the region.
"The attack in Nice is truly a terrible event, but in terms of market reaction, these types of shocks are generally short-lived, -. Said Michael Kappler, an expert Mittelbrandenburgische Sparkasse -. The fall of shares is also associated with a partial profit-taking after rising over the past few days. Now in the center of attention again, are central banks - investors are waiting for signals on how they are going to cope with the consequences of Brexit. Financial statements of European and American companies, also affects the dynamics of trading.
Market participants also drew attention to the data on the euro zone and Britain. The statistical agency Eurostat reported that in June, consumer prices in the eurozone rose by 0.2% after rising 0.4% in May. Meanwhile, annual inflation rose in June by 0.1% after falling 0.1% the previous month. Last Change (MoM and YoY) in line with expectations and preliminary estimate. Recall that in June 2015, annual inflation was 0.1%. The base index, which excludes energy and food prices, rose 0.9% year on year, confirming forecasts. Recall that in May, the index increased by 0.8%. Among the EU countries, annual inflation remained unchanged after falling 0.1% in May.
Meanwhile, the report submitted by the Office for National Statistics showed that in May, the volume of production in the construction sector decreased by 2.1% compared to April. Analysts had expected that the volume of construction to decrease by 1.1% after rising 2.8% in April (revised from + 2.5%). Housing construction fell by 3.2 percent in May, recording the biggest drop since February, 2014. In addition, data showed -1.9 percent after declining 0.6 percent in annual terms, construction output fell in May in April. Economists had expected a decline of 3.5 percent. In the period from March to May, construction decreased by 2.1% compared with the previous three months (December 2015 to February 2016 on. On an annual basis (March to May), construction fell by 1.7%.
The composite index of the largest companies in the region Stoxx Europe 600 companies fell by 0.4 percent.
Travel and leisure shares shows the largest decline among the 19 industry groups.
Shares of EasyJet Plc, Thomas Cook Group Plc and hotel operator Accor SA fell at least 2.1 percent.
Capitalization of Swatch Group AG fell 12 percent as the company said that weak demand for watches in Hong Kong, France and Switzerland led to a decrease in the volume of profits. Meanwhile. Peer Richemont price fell by 4.8 percent.
Shares of precious metals producers Fresnillo Plc and Randgold Resources Ltd., which rose in price against the background of increasing demand for safe-haven assets after Brexit today fell by at least 2.4 percent.
The cost of Swedish Orphan Biovitrum AB rose 3.7 percent after reports that the amount of quarterly profit and sales surpassed the expectations.
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