Best European Stocks Steady Amid Election Jitters in Spain

<div><img width="1000" height="667" src="https://www.financebrokerage.com/wp-content/uploads/2022/07/shutterstock_1733941658.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="European Stocks" decoding="async" loading="lazy" /></div><h1><strong>Best European Stocks Steady Amid Election Jitters in Spain</strong></h1>
<p>European shares experienced marginal gains on Monday, with energy firms and telecom stocks contributing to the uptick. However, concerns over a looming recession in the eurozone dampened overall market sentiment. The losses in Spanish stocks followed the inconclusive general election results.</p>
<p>Spanish stocks, represented by the benchmark IBEX index, were down 0.3%, reaching a near one-week low after the election results. Sunday’s vote failed to provide a clear majority for both left and right-wing blocs, resulting in a potential political gridlock and unsettling investors.</p>
<p>The utility sector in Madrid, which had priced in a victory for right-wing parties, saw a decline, with Endesa and Iberdrola experiencing drops of 2.7% and 0.5%, respectively. Additionally, a gauge of <a href="https://www.financebrokerage.com/spanish-football-team-a-fan-token-and-blockchain-platform/">Spanish</a> lenders, including Banco de Sabadell, Banco Santander, and Caixabank, fell 0.3%.</p>
<h2><strong>Euro Zone’s Business Activity Deepens Downturn, Raising Concerns</strong></h2>
<p>On the brighter side, the pan-European STOXX 600 inched up 0.1%, hovering close to its five-week highs.</p>
<p>The euro zone’s business activity survey showed a deeper downturn than expected in July. The dominant services industry reported a decline in demand, and factory output fell at the fastest pace since the start of the COVID-19 pandemic.</p>
<p>Jeremy Batstone-Carr, the European strategist at Raymond James, commented on the current market situation. He stated that Spanish equities experienced mild underperformance amidst general weakness in the eurozone equities. According to him, it was due to the negative perception of the regional economy indicated by the purchasing manager surveys.</p>
<h2><strong>Market Speculates on ECB’s Interest Rate Decision</strong></h2>
<p>Market participants have already factored in a quarter percentage point increase in interest rates to 3.75% by the European Central Bank later this week. However, the uncertainties surrounding the bank’s actions beyond July are creating cautiousness among investors.</p>
<h3><strong>Irish Stocks Decline on Ryanair’s Weak Traffic Forecast</strong></h3>
<p>Irish stocks led the losses on the index, declining by 0.9%. Mainly, a 6.1% fall in Ryanair followed the airline’s weak traffic forecast for 2024.</p>
<p>Energy shares were a bright spot, adding 1.5% as crude prices rose due to tightening supply and optimism about potential Chinese stimulus measures.</p>
<h3><strong>Telecom Sector Boosted and Bavarian Nordic Plummets as RSV Vaccine Program Ends</strong></h3>
<p>The telecom sector received a boost, with Vodafone Group rallying 4.1% after reporting accelerated first-quarter top-line growth.</p>
<p>Conversely, Bavarian Nordic saw a sharp tumble of 26.0% to an over one-year low as it announced the termination of its respiratory syncytial virus (RSV) vaccine program.</p>
<h3><strong>Swiss Bank Julius Baer Reports Impressive 18% Profit Increase</strong></h3>
<p>Dutch health technology company Philips faced a slide of 5.8% after posting its fourth consecutive decline in order intake on Monday.</p>
<p>Swiss private bank Julius Baer was among the gainers, climbing 8.4% after reporting an 18% increase in net profit for the first half of 2023.</p>
<p>The post <a rel="nofollow" href="https://www.financebrokerage.com/best-european-stocks-steady-amid-election-jitters-in-spain/">Best European Stocks Steady Amid Election Jitters in Spain</a> appeared first on <a rel="nofollow" href="https://www.financebrokerage.com">FinanceBrokerage</a>.</p>

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