European Shares Mixed As Commodity Stocks Drag

European stocks traded mixed on Monday, with mining and energy stocks declining after Country Garden Holdings, a major property developer in China, missed bond payments and warned of multibillion-dollar losses.

The company risks defaulting in September if it still cannot pay after a 30-day grace period.

The pan European STOXX 600 traded 0.2 percent higher at 460.20, tracking gains in U.S. stock futures.

The German DAX rose 0.6 percent after data showed Germany’s wholesale prices continued to decline in July.

Wholesale prices posted an annual decline of 2.8 percent in July but slightly slower than the 2.9 percent fall in June. This was the fourth consecutive decline in prices.

Month-on-month, wholesale prices dropped 0.2 percent, the same pace of decline as seen in June.

France’s CAC 40 was up 0.4 percent while the U.K.’s FTSE 100 was down 0.3 percent, dragged down by commodity stocks.

Miners Anglo American and Glencore both fell over 1 percent as the dollar firmed up on risk aversion amid concerns over China’s embattled property sector.

Weaker oil prices sent energy stocks lower, with BP Plc and Shell both falling around 1 percent.

Automakers traded mostly higher, with BMW up nearly 1 percent and Volkswagen adding half a percent after Tesla rolled out a new round of price cuts in China.

Adesso jumped 6 percent after reporting a surge in its first-half EBITDA profit and confirming FY23 outlook.

Banks were seeing broad-based gains, tracking gains in Eurozone government bond yields.

Germany’s 10-year government bond yield hovered near a one-month high as investors assessed upside risks to the inflation outlook.

Philips soared 5 percent after Dutch investment firm Exor took a 15 percent stake in the healthcare company.

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