European shares were slightly lower at the opening on Monday as weaker-than-expected China trade data and a profits warning from workspace provider IWG dampened sentiment.
The pan-European Stoxx 600 index fell 0.3% after hitting a record high on Friday. Investors were also eyeing critical US inflation data later this week.
Mining stocks were weaker as lower-than-expected Chinese exports sparked concerns of weakening demand. Trade data for May showed that exports slowed more than expected, rising 27.9%, although imports rose to 51.1% from 43.1%.
In equity news IWG was the biggest faller on the Stoxx, down 15.5%x after warning that underlying profit for 2021 is set to be “well below” the previous year’s level due to Covid-related restrictions in some of its markets, but reiterated its expectations for a recovery in 2022.
French vouchers and cards provider Edenred rose 2.4% after Deutsche Bank upgraded the stock to ‘buy’.
UK housebuilders all rallied on news that British house prices have risen to a new peak, as the stamp duty holiday and demand for larger houses after the pandemic continued to fuel the market.
Halifax bank reported that the average property now costs £261,743, with annual house price inflation at its strongest level in almost seven years based on its own index, which revealed the average price rose by 1.3% in May alone, and was 9.5% higher year on year than a year ago.
Persimmon, Vistry, Taylor Wimpey, Redrow and Bellway were all up by more than 2% on the news, along with a note from broker Liberum that saw more upside in the sector.
