Europe News

Europe markets close lower on tech sell-off; oil prices rise

Key Points
  • Oil stocks were among the top performers on Monday, driven by a spike in crude.
  • Mining stocks also enjoyed investor attention, but fell in afternoon trade.
  • Tech stocks plunged sharply on Apple supply fears and questions over deal-making.

European equities closed lower on Monday on the back of a sell-off in tech stocks and higher oil prices.

European markets

The pan-European Stoxx 600 ended provisionally lower by 1.00 percent with almost every sector in the red. The tech sector was the worst performer, down by almost 3.58 percent. SAP was down 5.52 percent after making a deal to buy Qualtrics for $8 billion.

Shares of Austrian chipmaker AMS tumbled 22.41 percent after other suppliers to tech giant Apple cut their forecasts. The German-listed Infineon also shed value following demand fears, losing 7.31 percent during the session.

On the other hand, oil and gas stocks were the top performers on Monday, up by more than 0.24 percent. At the weekend, Saudi Arabia announced a cut in supply for December in a bid to halt a recent slump in prices. At the closing bell, Brent had risen 1.27 percent to trade at $71.07 and WTI was up by 1.11. percent at $60.88.

BP and Royal Dutch Shell were up 0.80 percent and 0.71 percent respectively after the crude oil price recovery.

By the close the  FTSE 100 was provisionally down 46 points or 0.65 percent, at 7,105.

In other stock news, Telecom Italia rose toward the top of the benchmark, up by 2.79 percent by the close. This was after news that it could merge with its domestic rival Open Fiber. British American Tobacco dropped 10.62 percent after news of a potential ban on menthol cigarettes in the U.S.

In the U.K., Prime Minister Theresa May was reportedly forced to drop plans for an emergency Brexit cabinet meeting on Monday due to resistance in her own government, the Independent reported. According to the Sunday Times, four government ministers who are pro-European are on the brink of resigning. All eyes are now on a cabinet meeting scheduled for Tuesday.

Ben Broadbent, deputy governor of the Bank of England, told CNBC Monday that the next two to three months will be critical for the future of the U.K. economy.

"The sequence of events over the next two to three months could change the outlook materially," Broadbent said.