European Stocks Ease, US Offshore Project Halt Sinks Wind Stocks
European stocks declined after briefly surpassing their March record high before the weekend as wind stocks lagged following a halt in the construction of an Orsted A/S project in the US.
The Stoxx Europe 600 Index fell 0.3% as of 8:17 a.m. in London. There is no cash trading in London due to a bank holiday.
Orsted fell as much as 19% to a record low after the Trump administration halted work on an offshore wind that was nearly completed by the Danish company. Wind turbine maker Vestas Wind Systems A/S dropped 4.7%.
Keurig Dr Pepper Inc. agreed to buy JDE Peet’s NV for €15.7 billion to bolster its struggling coffee business and shares of the latter jumped 18%.
Valneva SE also fell 26% after its shot for a mosquito-borne disease was suspended in the US after an investigation into its adverse effects among older patients.
European stocks are currently trading 0.6% below their March high. The benchmark has rebounded from an April low on optimism that the European Union and the US that tariffs would be less severe than feared. Macro data and Nvidia Corp. earnings will be in the market’s focus this week.
Traders now see an 84% chance of a Federal Reserve rate cut next month after Jerome Powell signaled at Jackson Hole, Wyoming, the central bank may ease before inflation fully returns to target amid a softening hiring environment.
Source : Bloomberg
