European Stocks Close Slightly Lower After Cautious Session

(RTTNews) - European stocks closed slightly lower on Monday as worries about growth amid rising interest rates, and political uncertainty in Russia rendered the mood cautious.

Activity was mostly stock specific with latest quarterly earnings, and other corporate news providing some direction.

A short-lived mutiny in Russia by the Wagner paramilitary group revived concerns over nuclear arsenal security. German business sentiment pointed to the likelihood of a longer recession, further weighing on sentiment.

The headline German IFO Business Climate Index fell to 88.5 in June from 91.5 in May (revised from 91.7) reflecting weakness in the manufacturing sector, according to data from the Ifo Institute. Analysts expected a score of 90.7.

The pan European Stoxx 600 edged down 0.1%. The U.K.'s FTSE and Germany's DAX both ended down 0.11%, and France's CAC 40 climbed 0.29%. Switzerland's SMI ended 0.71% down.

Among other markets in Europe, Belgium, Denmark, Greece, Iceland, Ireland and Russia ended weak.

Austria, Poland, Portugal and Turkiye closed higher. Czech Republic, Finland, Netherlands, Spain and Sweden ended flat.

Banks ended broadly lower on concerns fueled by the latest political turmoil in Russia.

In the UK market, Vodafone Group drifted down 3.62%. BAE Systems lost 2.07%, while Haleon, Melrose Industries, Ocado Group, IAG, AstraZeneca, Ashtead Group and Flutter Entertainment lost 1 to 1.77%.

Sainsbury (J) rallied 2.6%. Berkeley Group Holdings, JD Sports Fashion, Taylor Wimpey, Admiral Group, Whitbread, NEXT, Antofagasta, Barratt Developments, B&M European Value Retail, Tesco, Anglo American Plc and Glencore gained 1 to 2%.

In the German market, Siemens Energy, Fresenius, Fresenius Medical Care, Siemens Healthineers and Vonovia lost 1 to 2.05%. Siemens, MTU Aero Engines, Bayer and SAP also ended lower.

Puma climbed nearly 2.5%. Zalando surged 1.9%. Daimler Truck Holding, BASF and Covestro gained 1.2 to 1.5%.

In Paris, Thales ended 2.6% down, and Teleperformance ended lower by 1.4%. Dassault Systemes, Eurofins Scientific, Sanofi and Danone posted moderate losses.

STMicroElectronics surged more than 2%. Engie, WorldLine, Carrefour and TotalEnergies gained 1 to 1.75%.