ROME: European stocks dropped Monday, with investors entering the week seeing sharp losses in Chinese markets, and caution ahead of a highly anticipated monetary decision by the U.S. Federal Reserve.
The Stoxx Europe 600 SXXP, -1.22% fell 1.1% to 390.48, with only the utility sector logging an advance. The index slightly pared its loss after a closely watched German sentiment survey came in better than anticipated. The Ifo think tank’s business climate index rose to 108.0 in July, higher than a forecast of 107.5 in a Wall Street Journal poll of analysts.
The euro EURUSD, +0.7829% briefly rose to a two-week high above $1.11 after the report. It recently bought $1.1078 versus $1.0985 late Friday in New York.
European indexes dropped as the Shanghai Composite SHCOMP, -8.48% tumbled 8.5%, marking its worst session since 2007. Analysts attributed the plunge to worries about a slowing in government buying, as well as disappointing industrial data.
After opening with a modest loss, Germany’s DAX 30 DAX, -1.27% fell 1.3% to 11,199.99 and France’s CAC 40 PX1, -1.43% gave up 1.4%, losing grip of the 5,000 level. The U.K.’s FTSE 100 UKX, -0.14% shed 0.1% to 6,572.17.
The Stoxx 600 last week fell 2.7%, in part feeling the weight of a selloff in commodities that have hit mining and energy stocks.
