European Shares Move Lower Ahead of G20 Summit

European stocks fell in cautious trade on Monday, with weak German business confidence data, rising tensions between the U.S. and Iran and caution ahead of this week’s G20 meeting in Japan keeping underlying sentiment cautious.

The pan European Stoxx 600 was down 0.15 percent at 384.18 after declining 0.4 percent on Friday.

The German DAX was losing half a percent and France’s CAC 40 index was down 0.1 percent while the U.K.’s FTSE 100 was little changed.

Denmark’s Danske Bank A/S tumbled 3.4 percent after dismissing executive board member and Head of Danish Banking Jesper Nielsen for misguided management decision.

Banco Santander, S.A. and Allianz were moving lower after they decided to end an agreement over the distribution of insurance products.

Daimler AG’s shares slumped 4.5 percent. The German automaker cut its 2019 earnings outlook, citing troubles with diesel vehicles from its Mercedes-Benz brand.

Retailer Metro AG rallied 3 percent after rejecting a takeover offer made by EP Global Commerce VI GmbH.

Airline Deutsche Lufthansa fell 1.4 percent after adjusting its dividend policy.

Deutsche Bank declined 1.6 percent. According to the Financial Times, U.S. regulators have sought explanation from the lender about its “bad bank” proposal and its impact on U.S. operations.

French supermarket chain Carrefour SA gained 1.5 percent after it agreed to sell an 80 percent equity stake in Carrefour China to Suning.com, the Fortune Global 500 retailer owned by Suning Holdings Group.

Alstom climbed 2.3 percent. The transport infrastructure group has laid out its new strategic plan and objectives for 2023.

Regency Mines shares jumped as much as 30 percent after the British company announced board overhaul with a new chair and chief executive.

In economic releases, Germany’s business sentiment weakened in June, survey data from the Munich-based Ifo Institute showed. The corresponding index dropped to 97.4 from 97.9 in May. The score was forecast to fall to 97.5.

Heads Up Before The Opening Bell

Here is what you need to know.

1. Turkish President Erdogan has suffered a setback. His handpicked candidate lost in the Istanbul mayoral election.

2. Iran says US cyberattacks against it failed. “No successful attack has been carried out by them, although they are making a lot of effort,” the country’s IT Minister tweeted on Monday.

3. China wants FedEx to explain its treatment of Huawei. The US logistics giant blamed its failure to ship a Huawei smartphone from Britain to the US on an “operational error.”

4. Hong Kong protests continue. More than 100 people blocked a government building on Monday to show their disapproval of a proposed extradition bill.

5. Facebook and Google may have to reveal value of users’ data. An upcoming senate bill would require tech companies to tell users every 90 days what personal information they’ve collected and how much it’s worth.

6. Boeing 737 Max pilots are suing. More than 400 pilots have joined a class-action lawsuit that accuses the aviation giant of an “unprecedented cover up.”

7. There was a lethal drone attack at a Saudi airport. One person died and seven people were wounded in a Saudi Arabia airport attack by Houthi militia.

8. Oil, gold, and bitcoin are jumping. West Texas Intermediate crude rose 0.8% to $57.90, while Brent crude rose 0.2% to $64.60. Gold climbed 0.7% to $1,409, and bitcoin rose 1.1% to $10,880.

9. More earnings reports are coming out. Japanese drinks giant Asahi, British filtration group Porvair, and a few others are scheduled to release results today.

10. Eyes will be on bond and oil markets. The three-month and six-month bill auctions should provide insights into the state of US government debt, while the OPEC meeting will determine further cuts to oil supplies.



Taiwan’s Industrial Output Fell More Than Expected

Taiwan’s industrial output fell at a faster-than-expected rate in May, data from the Ministry of Economic Affairs showed on Monday.

Industrial output dropped 3.05 percent year-on-year in May, after a 1.41 percent rise in April. Economists had expected a decline of 1.52 percent.

Among sectors, production in mining and quarrying declined 3.83 percent in May and electricity and gas supply production decreased by 3.79 percent.

Manufacturing output and water supply decreased by 3.01 percent 2.29 percent, respectively.

On a month-on-month basis, industrial production fell 0.65 percent in May, after a 5.78 percent increase in the preceding month.

Separate data from the Ministry of Economic Affairs showed that the jobless rate came in at 3.67 percent in May, the same rate as seen in April. Economists had expected 3.7 percent.

On a seasonally adjusted basis, the unemployment rate rose 0.02 percentage points to 3.75 percent in May.

The number of unemployed persons held steady at 437,000 in May.