Rising European stocks, separated from US tech fears

A worker assembles a VW ID3 electric car at a Volkswagen factory on July 31, 2020 in Zwickau, Germany.

Jane’s Sloater / Getty Images

European stocks improved on Monday, after rough weeks for markets.

Stocks Europe 600 SXXP, down 1.9% last week
+ 1.06%
Renault rose 1.1%, with automobile manufacturers including RNO
+ 2.96%
And Volkswagen VOW3,
+ 3.18%

German DAX DAX,
+ 1.27%,
French CAC 40 PX1,
+ 1.19%
And UK FTSE 100 UKX,
+ 1.44%
Also advanced.

U.S. Stock futures, which are traded in the U.S. Markets will trade despite being closed for Labor Day holidays, especially for technol or G-oriented Nasdaq-100 NQ100,

Last week, tech-dominated Nasdaq Composite COMP,
March.4% loss, its worst decline since March 30, and the first decline after five consecutive gains.

Softbank Group 9984,
Shares in Tokyo fell 7 percent on Monday, following a Wall Street Journal report that Japan’s investment group bought options worth billion 4 billion, linked to about 50 50 billion in individual tech shares.

Hussein Syed, chief market strategist at FXTM, said there was no specific trigger for the sell-off but stock prices had reached a level that could no longer be justified by fundamentals after a sharp rise in monetary and monetary policies. “Liquidity and low interest rates alone cannot be the solution to everything, so it is important to see an end to the epidemic for sustainable improvement in economic data and sustainable uptake in risk assets.”

Germany Industrial production rose 1.2% in July, slower than forecast.

Weakened after the Financial Times reported that the UK was working on legislation to override parts of the Brexit withdrawal agreement. Separately, the Sunday Express reported that a dossier was being considered by Downing Street that would try to limit access to European Union companies seeking to raise money in London. Negotiations on the post-Brexit UK-EU trade deal are set to resume on Tuesday.

“At the very least, it seems strange that the UK will weaken its commitment to Ireland with the forthcoming legislation, following steps taken by the UK in recent months to prepare for the day of the Northern Ireland border crossing. This suggests that the UK is trying to increase the pressure to make more deals as it chooses, rather than a tough exit, “said Callum Pickering, a senior economist in Barenberg.

Associated British Foods ABF,
+ 2.76%
Trading in the fourth quarter ended September 12 in both its food businesses and retailer Primark exceeded expectations, after rising 3%.