European Stocks Fall Most in July on Euro Gain, Tumble in Miners

European Stocks End a Five-Day Winning Streak

European stocks dropped the most in July as investors bet a stronger currency will drag on exporters’ earnings, while miners snapped a six-day winning streak.

The Stoxx Europe 600 Index lost 1.1 percent at the close, dragged lower by cyclical industries including basic resources and technology shares. The euro strengthened for a third day as a setback for U.S. President Donald Trump’s economic agenda weakened the dollar, just as the European Central Bank prepares for its policy decision this week.

  • The Stoxx Europe 600 breached its 100-day moving average from above, which to some technical analysts signals further losses may come.
  • Miners declined the most in four weeks after trading at a four-month high on Monday
  • Some shares were active on earnings updates: 
    • Ericsson AB tumbled 16 percent after its quarterly profitability and sales were weaker than expected. Rival Nokia Oyj lost 3.5 percent.
    • Zalando SE slumped 8.3 percent after the German online retailer indicated that second-quarter earnings will fall short of expectations.
    •  Software AG rose 0.4 percent after increasing its full-year profitability forecast.
  • British American Tobacco Plc, which gets almost a third of its sales from the Asia Pacific region, fell 1.3 percent after India raised levies on tobacco products.
  • U.S. Senate Majority Leader Mitch McConnell abandoned efforts to pass a broad Republican-only replacement of Obamacare, casting a cloud on Trump’s economic reform plans.

— With assistance by Elena Popina

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