Watch: Stocks mixed as they head for record month
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Energy and travel stocks slip
Energy and travel stocks slipped on Monday, as investors booked profits with European stocks set for their best month on record.
British Airways owner IAG (IAG.L) was down 1.7% in mid-morning trade, while Intercontinental Hotels Group lost 1.5% and Premier Inn owner Whitbread was off 1%.
Stocks dipped at the open in Europe before turning positive. The FTSE 100 (^FTSE) in London was up 0.5% and the DAX (^GDAXI) up 0.4% in Frankfurt, but the CAC 40 (^FCHI) remained 0.2% down in Paris in early trade.
Several leading indices including the Stoxx and the DAX were set for their best month on record.
“The current trade seems to be about consolidating the rapid gains in November before looking for a potential Santa rally in December,” said Markets.com chief analyst Neil Wilson.
Stocks had fallen overnight in Asia, despite Chinese official purchasing managers’ data showing the strongest manufacturing growth since September 2017. The headline reading for factory output came in at 52.1, beating the expected 51.5 figure.
Oil futures took a hit on Monday morning as investors’ hopes faded over the scale of production cuts likely to be agreed at an Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting this week.
Crude futures (CL=F) were down 1.5% at 9.15am in London, falling as much as 2%, to $47.17 a barrel earlier in the session and knocking energy stocks. Brent (BZ=F) also fell around 2% in early trade in London to trade at $47.23 a barrel.
Despite losses, however, the benchmarks are looking at a rise of more than a fifth overall in November. These would clock the strongest monthly gains since markets began to recover from COVID-19-related sell offs in May.
Arcadia, the retail group owned by billionaire Sir Philip Green, is set to enter administration “within hours,” according to the BBC.
The BBC reported on Monday morning that the retail group — which owns brands like Topshop, Dorothy Perkins, and Miss Selfridge — was set to appoint administrators after failing to secure a rescue deal over the weekend.
Arcadia has been approached for comment by Yahoo Finance UK.
Reports that the group could collapse first emerged on Friday. A spokesperson for the company said at the time that management were “working on a number of contingency options to secure the future of the group’s brands.”
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