As the new week commences, the European stock markets have been observed to take a bearish turn. This sets a somber tone for the week ahead, as market participants brace themselves for potential volatility.
Early trading activities indicated the broad Euro Stoxx 600 index experiencing a slight dip of 0.1 percent. This was also mirrored in Frankfurt’s DAX index which decreased by 0.2 percent, while London’s FTSE 100 index fell just 0.03 percent.
Elsewhere in Europe, the Paris CAC 40 index was not spared, recording a 0.3 percent drop. Similarly, the OMXS30 index, representative of the Stockholm stock exchange, also fell by 0.1 percent.
In a notable corporate announcement, Spanish banking behemoth Santander declared plans to initiate a share buyback program starting from Tuesday. The company is expected to repurchase shares worth an impressive 1.46 billion.
On the regulatory front, the European Union has levied a hefty fine of 500 million euros on US-based tech company, Apple, as reported by the Financial Times. The company is accused of violating EU law by failing to inform iPhone users about potential cheaper services. This action was precipitated by a complaint filed by Swedish company, Spotify, in 2019.
In economic news, Finland witnessed a slowing down of inflation in January, with the annual change in consumer prices falling from 3.6 percent in December to 3.3 percent.
On a brighter note, retail sales in Great Britain saw a surprising surge in January, growing by 3.4 percent, significantly surpassing the consensus expectation of a 1.5 percent rise. Despite a slowdown in sales the previous month by 3.3 percent, the strong growth in January presents a promising outlook.
“The strongest sales growth since April 2021 comes in the midst of a recession, yet the robust retail sales development suggests that the economic downturn will remain mild,” commented Nordic analysts in the bank’s morning review.
It is also worth noting that US stock markets will remain closed today in observance of President’s Day.
