Bulletin
Investor Alert

Europe Markets Archives | Email alerts

May 13, 2021, 10:52 a.m. EDT

European stocks drop but pare losses amid inflation jitters

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    STOXX Europe 600 Index (SXXP)
  • X
    DAX (DAX)
  • X
    CAC 40 Index (PX1)

or Cancel Already have a watchlist? Log In

By Barbara Kollmeyer

European pared losses by the afternoon on Thursday, in a move that earlier in the day saw investors play catch up to heavy selling on Wall Street sparked by surging consumer price inflation.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.23% fell 0.3% to 436.42, after a 0.3% gain on Wednesday. The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.12% was flat along with the French CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +0.20% and the FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.17% was off 0.9%. Markets in Sweden and Switzerland were among those closed for the Ascension Day holiday.

The Dow industrials /zigman2/quotes/210598065/realtime DJIA -0.77% were rebounding after skidding 681.50 points to 33587 on Wednesday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.54% and Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -0.24% bounced 0.7% each after losses the prior session. Investors took another round of U.S. inflation data in stride, as April’s producer-price index jumped 0.6%, above forecasts for a 0.3% rise. 

Investors got spooked on Wednesday by a report showing U.S. inflation in the year to April climbed at its fastest pace in roughly 13 years , sparking fears of an overheating economy.

“You may get dull periods but this year is going to be a big battle between the bullishness of mass reopening/stimulus on one hand and the inflationary consequences on the other. Expect regular pockets of vol. [volatility],” said a team of Deutsche Bank strategists led by Jim Reid, in a note to clients.

Rising energy prices were a contributor to that U.S. inflation spike, though crude /zigman2/quotes/211629951/delayed CL.1 -0.83% and Brent futures were both off more than 2%, a day after marking their best settlements since March . Shares of major energy companies Total , Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA -0.70% /zigman2/quotes/205095589/composite RDS.A -1.63% and BP /zigman2/quotes/202286639/delayed UK:BP -1.13% /zigman2/quotes/207305210/composite BP -1.59% tracked those losses.

U.S. gasoline  prices topped $3 a gallon  on Wednesday for the first time in more than six years, as a cyberattack on a major U.S. fuel artery — Colonial Pipeline — continued to cause fuel shortages at gas stations across the Southeast. Operations were restarted on Wednesday, but the company said it would take time to get the situation back to normal.

Mining stocks fell in step with weak iron ore prices. Shares of Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +0.10% /zigman2/quotes/202627887/composite RIO -2.04% , Anglo American /zigman2/quotes/201381512/delayed UK:AAL -1.18% /zigman2/quotes/201381512/delayed UK:AAL -1.18% and BHP /zigman2/quotes/203323256/delayed UK:BHP -0.09% dropped 3% each. Moves earlier in the week by several Chinese commodity exchanges to lift trading and margin limits on iron ore contracts had failed to cool prices.

Elsewhere, shares of Telefónica /zigman2/quotes/207034643/composite TEF -2.00% /zigman2/quotes/200416613/delayed ES:TEF -0.65% climbed over 3%. The Spanish telecom group posted a profit rise, though revenue dipped, and it said it expects to meet 2021 guidance.

Shares of Burberry /zigman2/quotes/205386705/delayed UK:BRBY +0.71% slumped 7% for the Stoxx 600’s worst performer. The luxury retailer said operating profit more than doubled in fiscal 2021, well ahead of market views, with sales lifted by China and the U.S.

“A weak wider market and some elements of profit-taking have made for an ugly start for the shares in response to the results. While this update will reassure bulls of the stock, given the recent strength of the price performance, the shares are seen as being up with events for now, with the market consensus coming in at a hold,” said Richard J. Hunter, head of markets at Interactive Investor.

Software and technology companies got a lift as U.S. tech stocks rebounded, with semiconductor company ASML Holding /zigman2/quotes/210293876/composite ASML -0.39% up 2.5% and software company SAP /zigman2/quotes/202053813/delayed XE:SAP -1.20% /zigman2/quotes/207905606/composite SAP -1.18% rising 1.2%.

/zigman2/quotes/210599654/delayed
XX : STOXX
459.86
+1.05 +0.23%
Volume: 0.00
June 16, 2021 11:03p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,710.57
-18.95 -0.12%
Volume: 58,585
June 16, 2021 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,652.65
+13.13 +0.20%
Volume: 69,886
June 16, 2021 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,184.95
+12.47 +0.17%
Volume: 691,680
June 16, 2021 4:59p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,033.67
-265.66 -0.77%
Volume: 348.03M
June 16, 2021 5:12p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,223.70
-22.89 -0.54%
Volume: 2.22B
June 16, 2021 5:12p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
14,039.68
-33.17 -0.24%
Volume: 4.20M
June 16, 2021 5:16p
loading...
/zigman2/quotes/211629951/delayed
US : U.S.: Nymex
$ 71.55
-0.60 -0.83%
Volume: 1,019
June 16, 2021 6:10p
loading...
/zigman2/quotes/206428183/delayed
UK : U.K.: London
£ 1,474.20
-10.40 -0.70%
Volume: 4.33M
June 16, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.03%
Market Cap
£113.46 billion
Rev. per Employee
£1.52M
loading...
/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 41.67
-0.69 -1.63%
Volume: 5.14M
June 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
2.72%
Market Cap
$159.83 billion
Rev. per Employee
$1.97M
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
328.95 p
-3.75 -1.13%
Volume: 44.48M
June 16, 2021 4:40p
P/E Ratio
N/A
Dividend Yield
4.52%
Market Cap
£67.07 billion
Rev. per Employee
£2.21M
loading...
/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 27.93
-0.45 -1.59%
Volume: 9.19M
June 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
4.44%
Market Cap
$94.49 billion
Rev. per Employee
$2.86M
loading...
/zigman2/quotes/208934945/delayed
UK : U.K.: London
6,020.00 p
+6.00 +0.10%
Volume: 2.94M
June 16, 2021 4:35p
P/E Ratio
12.94
Dividend Yield
6.78%
Market Cap
£100.57 billion
Rev. per Employee
£732,787
loading...
/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 84.66
-1.76 -2.04%
Volume: 2.21M
June 16, 2021 4:00p
P/E Ratio
13.98
Dividend Yield
5.48%
Market Cap
$141.67 billion
Rev. per Employee
$947,003
loading...
/zigman2/quotes/201381512/delayed
UK : U.K.: London
2,963.50 p
-35.50 -1.18%
Volume: 3.56M
June 16, 2021 4:44p
P/E Ratio
23.02
Dividend Yield
2.47%
Market Cap
£37.01 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201381512/delayed
UK : U.K.: London
2,963.50 p
-35.50 -1.18%
Volume: 3.56M
June 16, 2021 4:44p
P/E Ratio
23.02
Dividend Yield
2.47%
Market Cap
£37.01 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203323256/delayed
UK : U.K.: London
2,129.00 p
-2.00 -0.09%
Volume: 3.58M
June 16, 2021 4:35p
P/E Ratio
19.91
Dividend Yield
5.41%
Market Cap
£124.06 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207034643/composite
US : U.S.: NYSE
$ 4.91
-0.10 -2.00%
Volume: 2.04M
June 16, 2021 4:01p
P/E Ratio
12.27
Dividend Yield
6.62%
Market Cap
$26.56 billion
Rev. per Employee
$435,344
loading...
/zigman2/quotes/200416613/delayed
ES : Spain: Madrid
4.06
-0.03 -0.65%
Volume: 9.48M
June 16, 2021 5:38p
P/E Ratio
11.98
Dividend Yield
7.98%
Market Cap
€21.90 billion
Rev. per Employee
€381,890
loading...
/zigman2/quotes/205386705/delayed
UK : U.K.: London
2,264.00 p
+16.00 +0.71%
Volume: 510,280
June 16, 2021 4:35p
P/E Ratio
24.41
Dividend Yield
1.88%
Market Cap
£9.08 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 699.05
-2.73 -0.39%
Volume: 590,950
June 16, 2021 4:00p
P/E Ratio
55.31
Dividend Yield
0.40%
Market Cap
$292.19 billion
Rev. per Employee
$567,632
loading...
/zigman2/quotes/202053813/delayed
XE : Germany: Xetra
118.82
-1.44 -1.20%
Volume: 2.12M
June 16, 2021 6:30p
P/E Ratio
26.11
Dividend Yield
1.56%
Market Cap
€141.86 billion
Rev. per Employee
€266,894
loading...
/zigman2/quotes/207905606/composite
US : U.S.: NYSE
$ 142.52
-1.70 -1.18%
Volume: 615,800
June 16, 2021 4:00p
P/E Ratio
26.70
Dividend Yield
2.02%
Market Cap
$172.02 billion
Rev. per Employee
$304,253
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.