* STOXX 600 loses for fourth straight session
* Euro zone inflation turns negative in August
* Apple suppliers bolster tech sector
* Strong Chinese factory data helps resource stocks
* British bluechips hit over 3-month closing low (Updates to market close)
By Ambar Warrick
Sept 1 (Reuters) - European shares fell for a fourth straight session on Tuesday due to losses in British blue chips and weak euro zone inflation data, while the technology sector outperformed on gains in major Apple suppliers.
Apple AAPL.O suppliers in the region rose after the iPhone maker was reported to have asked suppliers to make at least 75 million 5G phones for later this year, propping up the technology index .SX8P . STM.PA , Dialog Semiconductor DLGS.DE , Infineon Technologies IFXGn.DE and ASML ASML.AS were up between 1% and 4%.
The pan-European STOXX 600 index .STOXX ended 0.4% lower after swinging in a range of 0.8% to negative 1%. The benchmark index has fallen behind its Wall Street peers this year, sticking to a tight trading range since June amid signs of a stalling euro zone economic recovery.
The European volatility index .V2TX rose as much as 1 point to 27.8950 during the session.
Inflation in the bloc turned negative last month for the first time since May 2016, putting further pressure on the European Central Bank to inject yet more stimulus to generate price growth, which has undershot its target for over seven years. ECB has signalled that they would not like to lower interest rates any further. So any changes in policy would likely be to step up purchases of government bonds even further," said Teeuwe Mevissen, Senior Market Economist at Rabobank in Amsterdam.
A recovery in local manufacturing activity continued through August, a survey showed. and leisure stocks .SXTP were the worst performing European sector for the day, as spiking COVID-19 cases in popular tourist destination Portugal spurred concerns about the country being quarantined. blue-chip stocks .FTSE fell in catch-up trade after a holiday on Monday, touching a more than three-month closing low.
Financial stocks, particularly EU banks .SX7P , marked a second straight day of losses. Rabobank's Mevissen said recent selling in financials was driven by expectations of an increased amount of bankruptcies in the second half of the year, due to the impact of the novel coronavirus.
China-sensitive sectors such as basic resources .SXPP rose after robust manufacturing data from the country pushed up base metal prices. MET/L
Telecom Italia TLIT.MI fell 2.1% after its board approved a sale of a minority stake in its last-mile grid to U.S. investment firm KKR KKR.N , while endorsing a government plan to create a single ultra-fast network with rival Open Fiber.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.