European stocks dipped on Monday, snapping a five-week winning streak, as a surprise US credit rating downgrade and weak economic data from China weighed on investor sentiment.
The pan-European STOXX 600 index was down 0.5% by 0725 GMT, retreating from seven-week highs touched on Friday.
US stock index futures fell more than 1% and longer-dated US Treasury yields rose after credit rating agency Moody’s cut its ratings on the country’s debt, citing concerns about the nation’s growing $36 trillion debt pile.
Euro zone government bond yields also edged higher. Meanwhile, luxury stocks declined after April retail sales data from China missed expectations.
Europe’s STOXX 600 set for fifth straight weekly rise
Hermes, Burberry and Moncler each dropped about 2% as European luxury firms count on China as a big market for their products.
Shares of BNP Paribas rose 2.4% after the French bank announced a share buyback plan worth 1.08 billion euros ($1.21 billion). Volkswagen tumbled 3.1% as the German automaker traded ex-dividend.
Comments
Comments are closed for this article.