© Reuters. FILE PHOTO: A DAX chart of the German share price index is depicted at the stock exchange in Frankfurt, Germany, June 2, 2023. REUTERS/Staff.
By Shreyashi Sanyal
(Reuters) – European shares were flat on Monday as markets struggled to maintain momentum following a rally seen last week, while London stocks led gains in the region following the performance. Upbeat performance of energy companies thanks to higher oil prices.
The pan-European index held near 462.5, barely trading within the three-point range, while London’s index, home to Europe’s top oil companies, led the gains with 0.5% increase.
The European oil and gas industry index rose 0.9 percent, supported by higher oil prices after top exporter Saudi Arabia pledged to cut output by an additional 1 million barrels per day from July.
Markets struggled to maintain optimism from Friday’s gains after eurozone inflation eased, the United States averted a default and dwindled bets that the Federal Reserve US states may pause interest rate hikes this month.
“This is just a consolidation from Friday’s strong gains following US data, so unless there is some major catalyst,” said Stephane Ekolo, global equity strategist at Tradition in London. in terms of macro news, we will be limited in scope.”
The STOXX 600 ended May with a drop of more than 3%, recording its worst monthly performance this year as most of the month passed with worries about the US debt ceiling and signs the global economic downturn.
European telecoms rose 0.8%, recovering from their worst session in 15 months on Friday after Amazon.com Inc (NASDAQ:) said it was in talks to offer low-cost mobile service.
Shares of Indivior Plc jumped 10% to top the STOXX 600 index after the drugmaker agreed to pay $102.5 million to settle a lawsuit over opioid addiction treatment Suboxone.
Asos jumped 11.6% after a report said the fashion retailer had received a £1 billion bid from Alibaba-backed rival Trendyol.
Swedish streaming company Viaplay Group fell about 59% after warning of a weakening business environment as rising costs of living dampened demand and said it was replacing its chief executive.
Separately, data showed that euro area business was supported last month as the bloc’s dominant services sector offset a deep decline in the manufacturing sector, while pressure price forces decrease.
Government data showed Swiss annual inflation fell to 2.2% as expected in May, although the Swiss National Bank could still raise interest rates later this month.
The Copenhagen Stock Exchange was closed on Monday for Constitution Day.