European markets lower; ad group WPP gains 10% as private equity firms circle
European stocks were lower on Monday afternoon, erasing earlier gains.
The pan-European Stoxx 600 was down around 0.3% by 3:49 p.m. in London (10:39 a.m. ET), with most sectors and major bourses negative territory.
Saab was one of the strong gainers on Monday after the Swedish aerospace and defense name announced on Friday a $3.6 billion deal to supply Colombia’s government with 17 Gripen fighter jets over the next five years. Saab’s share price gained 7.4% by late Monday morning, but pared gains later in the session and was last seen trading 2.5% higher.
Shares of Airbus rose 0.4% amid reports that the European aircraft manufacturer was close to securing a deal to supply almost 100 planes to flydubai at the Dubai Airshow, beating rival Boeing
to take the bulk of the budget carrier’s jet order.
Meanwhile, WPP advanced 10% following a report that the U.K. advertising agency is drawing takeover interest from private equity giants Apollo Global Management and KKR and smaller peer Havas
Monday’s market caution among regional stocks follows a troubled week for European markets last week, with regional bourses closing sharply lower on Friday as concerns about an artificial intelligence bubble and the global economy shook investor confidence.
Meanwhile, comments from U.S. Federal Reserve officials in recent weeks have also prompted investors to reconsider the likelihood of a December rate cut. On Monday, markets are pricing in a 56.1% chance that the Fed stands pat on rates at its next meeting, according to CME Group’s FedWatch tool. A month ago, the market had assigned a 95% probability to an end of year cut.
Stateside, stock were mixed as Wall Street anticipated key releases this week, including Nvidia earnings and the September jobs report. It follows a choppy end to last week in which valuation fears, a rotation within the market and a recalibration of Federal Reserve rate cut expectations pressured the artificial intelligence trade.
Meanwhile, Asia-Pacific markets traded mixed on overnight as investors assessed rising friction between Japan and China after Beijing warned its citizens about travel and study plans in Japan.
There are no major European earnings or data releases Monday.
Source: CNBC
