European Stocks Lower; Caution on Chinese Slowdown

European Stocks Lower; Caution on Chinese Slowdown

© Reuters.

By Peter Nurse 

Investing.com - European stock markets traded lower Monday, as weak Chinese economic data pointed to a Covid-induced slowdown while geopolitical turmoil prompted caution.

At 3:50 AM ET (0750 GMT), the in Germany traded 0.4% lower, the in France fell 0.6% and the U.K.’s dropped 0.8%.

European markets tracked losses in Asia earlier Monday after data released in China earlier in the day showed rose 6.4% year-on-year in July, and grew 8.5% year-on-year in the same month, both lower than expected. 

This slowdown is the result of the second largest economy in the world, and a key growth driver, tightening mobility restrictions to combat the spread of the highly-transmissible delta variant of the Covid-19 virus.

In neighboring Japan, the grew 0.3% quarter-on-quarter and 1.3% year-on-year in the second quarter, avoiding a double-dip recession despite continued restrictions to contain the coronavirus. 

The collapse of the Afghan government after Taliban insurgents took over Kabul, the capital, has added to the negative sentiment.

Back in Europe, there is little in the way of tier one economic data due for release Monday. 

In the corporate sector, HSBC (LON:) stock fell 0.5% after Europe’s