European Shares Fall As Beijing Passes Data Privacy Law
European stocks fell on Friday to extend losses from the previous session amid uncertainty over the spread of the coronavirus and the Fed’s taper plans.
Also, a rout in Chinese technology giants deepened after Chinese authorities passed a major data protection law, along the lines of Europe’s Global Data Protection Regulation, making it harder and costlier for tech firms in China to access and use consumer information.
The law, one of the world’s toughest on personal data security, places legal restrictions on how personal data can be collected, used and managed after it comes into effect on November 1.
The pan European Stoxx 600 dropped 0.3 percent to 465.85 after declining 1.5 percent on Thursday. The German DAX gave up half a percent, France’s CAC 40 index declined 0.4 percent and the U.K.’s FTSE 100 was down 0.2 percent.
Swedish real estate web portal Hemnet soared 13 percent after reporting a jump in quarterly sales and profits.
Miners were subdued, with Antofagasta tumbling as much as 2.3 percent. TotalEnergies, BP Plc and Royal Dutch Shell were little changed as oil prices steadied after six days of losses.
Travel-related stocks such as EasyJet and IAG fell about 1 percent on fears the spread of the Delta variant could lead to more travel restrictions.
German airline Lufthansa tumbled 3 percent and Franco-Dutch airline holding company Air France KLM lost 2.2 percent.
Marks and Spencer Group soared 11 percent. The retailer raised its profit guidance for the full year after reporting improved sales performance and profit delivery for 19 weeks to 14 August 2021.
Supermarket Morrisons surged 4.2 percent after it agreed a takeover offer worth 7.0 billion pounds ($9.54 billion).
Shares of Vertu Motors jumped 8 percent. The car dealership chain lifted its first-half and fiscal year outlook for adjusted pre-tax profit and announced that it plans to start a share buyback.
In economic releases, German producer prices grew 10.4 percent yearly in July, following a 8.5 percent rise in June, Destatis reported. Economists had forecast an increase of 9.2 percent. This was the fastest rise since January 1975, when prices grew sharply amid first oil crisis.
On a monthly basis, overall producer price inflation rose to 1.9 percent from 1.3 percent in June. Economists had forecast a rise of 0.8 percent.
Separate data showed a surprise fall in U.K. retail sales last month. Sales volumes fell by 2.5 percent from June, marking the biggest drop since January when Britain returned to lockdown.
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