On Monday, June 1, the European stock market crashed from its record highs. This was due to subdued trading due to the holidays in major markets.
However, confidence over an immediate economic recovery aided the STOXX 600 index to record its fourth straight monthly gains.
While the pan-European index plunged by 0.5%, dropping each of its 0.6% shares in Frankfurt and Paris.
Deutsche Bank was among the major fall off which also plummeted by 1.3%
This is due to the U.S. Federal Reserve telling the German lender that it failed in addressing the determined flaw in its anti-money-laundering authority.
On the other hand, Italian insurer Cattolica spiked 15.1%, succeeding its major rival Assicurazioni Generali saying that it will launch €1.14 B ($1.4 B) to buy out an offer for the firm.
Despite the jitters on the rising inflation, the STOXX 600 released a 2.1% surge in May. Economies are slowly resuming after the pandemic curbs.
Also, central banks repeatedly said that they would hand support in aiding the recovery.
The European Central Bank (ECB) President Christine Lagarde made a dovish statement. According to her, it was too early to talk about slowing its pandemic emergency bond purchases (PEPP).
This account, including ECB policymakers’ comments helped in supporting the sentiment last week.
It was reported that the German annual consumer price inflation jumped in May, which advances more than the ECB’s goal of close to but under 2.0%.
Among other achievers is the Swedish online property listing firm Hemnet which soared by 2.7% following its announcement of a 24.0% jump in quarterly sales.
This was assisted by the demand for large apartments and houses.
Some EU Members Stocks Also Fell
Consequently, some EU member states’ stocks also fell as the European stock market crashed from its continuous record highs.
On Monday, Denmark stocks lowered as losses in the financials, oil & gas, and healthcare sectors led to the shrinking of shares.
The OMX Copenhagen 20 plummeted by 0.63%, while Simcorp A/S also sank by 0.07%.
The nation’s worst performers were Ambu A/S, Danske Bank A/S, and Genmab, which all subsided by 2.53% at 227.0, 1.70% at 113.0, and 1.28% at 2463.0, respectively.
Meanwhile, at the close in Paris, the CAC 40 slipped 0.57%, while SBF 120 index also slouched 0.52%.
France’s worst performers were WFD Unibail Rodamco NV, Airbus Group SE, and Sanofi SA, which all impaired 1.37% at 71.18, 1.24% at 106.66, and 1.13% at 86.97, respectively.
Lastly, Germany’s stock fall was partly due to the downturn of Draegerwerk, Encavis, and Wacker Chemie, which all lapsed by 2.10% at 74.600, 1.91% at 14.910, and 1.76% at 136.50 at the close, respectively.