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Cyclical stocks knock Europe lower, focus on EU talks

Published 07/20/2020, 03:42 AM
Updated 07/20/2020, 03:45 AM
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt
BAER
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STOXX
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SXEP
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(Reuters) - European shares fell on Monday, dragged down by cyclical sectors amid a surge in coronavirus cases globally, while investors remained cautiously optimistic about the ongoing talks over an EU-wide recovery fund.

An index of eurozone shares (STOXXE) were down 0.5%, with the euro jumping to a four-month high. [FRX/]

EU leaders were making progress after three days of haggling over a plan to revive economies throttled by the COVID-19 pandemic, but Dutch Prime Minister Mark Rutte warned the discussions could still fall apart.

The broader European equities index (STOXX) also fell 0.5%, while Asian markets remained subdued as coronavirus cases increased in many countries. [GLOB/MKTS]

Travel & leisure (SXTP) fell 2.2%, the biggest sectoral decliner in Europe, while oil & gas companies (SXEP), automakers (SXAP) and banks (SX7P) dropped more than 1% each.

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

Swiss wealth manager Julius Baer Gruppe AG (S:BAER) declined 5.5% as it reported a 6% drop in assets under management from end-2019 in the six months through June.

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