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European stocks edged lower on Monday, as investors weighed signs that COVID-19 infections are continuing to spread in Asia, even as fears about inflation appear to have subsided.
After easing 0.5% last week, the Stoxx Europe 600
SXXP,
slipped 0.2%.
After a week of intense debate about inflation, the yield on the 10-year Treasury
TMUBMUSD10Y,
was 1.62% — up just 2 basis points from the previous Monday. “Some mixed activity data from China are a reminder that even that economy is not fully through the pandemic’s effects,” said Ian Williams, strategist at U.K. broker Peel Hunt.
Retail sales and industrial production in China both rose slower than expectations in April.
A number of Asian stock markets, most notably Japan
NIK,
and Taiwan
Y9999,
dropped on worrying coronavirus developments.
Ryanair Holdings
RYA,
RYAAY,
the Irish discount airline, edged up 2%. It recorded a €1 billion ($1.2 billion) annual loss in the year to March 30 and said bookings have jumped significantly from a very low base since the first week of April.
“Ryanair, like its ultra-low-cost peer Wizz Air
WIZZ,
weathered the crisis far better than its legacy counterparts. It also stands ready to hoover up the pent-up demand for foreign holidays we’re about to see as rules on international travel finally ease,” said Jack Winchester, an analyst at Third Bridge.
Diploma
DPLM,
a maker of specialty instruments, climbed 7%, after hiking its profit forecast and reporting a 33% rise in adjusted operating profit in the first half.
