Trading on European stock exchanges got off to an optimistic start to the new business week. Markets were mainly driven up by shares of pharmaceutical companies and signs of a slowdown in the Chinese economy. Investors are turning to defensive stocks.
Development of European markets
The pan-European Stoxx 600 index gained 0.34 percent on Monday and reached the highest value since the first decade of June this year. Compared to its lowest level (July 5), it managed to strengthen by 10.5 percent. Other major European markets developed similarly during Monday’s trading. London scored 0.11, Frankfurt 0.15, Paris 0.25 and Milan even 0.49 percent.
China’s economy indicates a slowdown
European growth was mainly driven by pharmaceutical companies. AstraZeneca, for example, added 2.4 percent. However, other defensive titles, which are less sensitive to the course of the economic cycle, also strengthened.
The reason is worse news coming from China, where the economy there is increasingly indicating a slowdown. Investors also bought back some European shares that they sold a few days ago due to concerns about the US central bank’s aggressive approach against inflation.
