LONDON (Bloomberg) -- European stocks fell after their best week since April, as delays to a widely expected stimulus rollout in China stoked concern about a potential global recession.
The Stoxx 600 was down 0.6% at 11:25 a.m. in London. Investors had been primed for China’s cabinet to possibly announce new support measures for the economy after a meeting on Friday, but it stopped short of releasing any specific proposals.
All subgroups were in the red in Europe except banks, with chemicals and construction sectors leading declines. Among individual movers, Sartorius AG slumped 15% after issuing a bigger-than-expected profit warning. The trading volume on the Stoxx 600 was about 24% lower than the 30-day average, with the US equity market closed for a holiday.
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European stocks have bounced in June, recouping last month’s declines, with investors wagering on stimulus measures from China as well as a pause in rate hikes from the Federal Reserve. Still, volatility has been muted and the Stoxx 600 hasn’t moved 1% or more in either direction in two weeks.
James Athey, investment director at Abrdn Plc, said he expects another week of subdued trading. It might be one “where markets are watching data and central bank speeches, which probably means fairly sideways price action given the run up of late.”
Meanwhile, JPMorgan Chase & Co. strategists said fundamentals don’t justify further investor rotation into cyclical and so-called value stocks in the absence of rising bond yields.
Stocks such as Berkeley Group after a survey found homesellers in London cut prices more than any UK region in June.
Oil stocks as the crude price declined after jumping last week.
Stocks connected to JD.com as analysts say the Chinese e-commerce company’s strong growth rate during the 6.18 promotional festival exceeded expectations despite intensified competition.