Key Points:
- Italy and France closed slightly higher, while Germany’s DAX fell.
- Defense and industrial stocks like Leonardo and Airbus saw strong gains.
- Tech stocks struggled, with Dassault Systèmes crashing over 10%.
- Oil prices climbed, but gold dropped below recent highs.
European stock markets ended Monday with mixed results. Investors seemed unsure of which direction to take, leading to a split between different sectors. While traditional industries like manufacturing and energy pulled markets up, technology and software companies dragged them down. Italy and France managed to squeeze out tiny gains, but Germany’s main index finished in the red.
In Milan, the market barely moved into positive territory. Industrial and energy companies did the heavy lifting. Leonardo SpA had a great session, rising over 3.6%, while shipbuilder Fincantieri also saw solid growth. On the flip side, the payment processor Nexi had a terrible day. Its shares fell to their lowest price ever, highlighting the ongoing struggles in the fintech sector.
Germany’s DAX index lost ground, dropping about 0.41%. Siemens was the biggest weight on the market, falling more than 6%. Software giant SAP also dipped, adding to the gloom. TeamViewer, known for its remote desktop software, hit an all-time low. However, it wasn’t all bad news in Frankfurt; online retailer Zalando and telecom provider Deutsche Telekom managed to post decent gains.
In Paris, the CAC 40 finished just above the flatline. Luxury giant L’Oreal and banking heavyweight Societe Generale helped keep the market afloat. Defense stocks remained strong here, too, with Dassault Aviation reaching a record high. However, the technology sector took a severe beating. Dassault Systèmes plummeted over 10% to a five-year low, and video game maker Ubisoft lost roughly 9% of its value.
Commodity markets also showed a split trend. Crude oil prices are creeping back up, with Brent crude rising about 1% to trade near $68.43 a barrel. This boost in energy prices helped support oil and gas stocks. Meanwhile, gold futures took a hit, dropping significantly to trade around $5,013 per ounce. In the currency market, the Euro stayed mostly flat against the US Dollar.
