European stocks get a boost from buoyant earnings

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But Chinese property sector tumbles on fears of widening crisis as Modern Land defaults on payment

An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange Group’s offices in London, the UK. File photo: BLOOMBERG VIA GETTY IMAGES/LUKE MACGREGOR

After a stellar quarter for US and British banks, Switzerland’s UBS rose more than 2% on its highest quarterly profit since 2015, helping the financial services sector climb about 1%. Weighing on the market were Chinese property stocks, which extended losses as another developer, Modern Land, defaulted on a payment, adding to worries about the effects of the debt crisis at China Evergrande Group.

“The impact of the China slowdown is becoming increasingly evident in other Asian economies, but also in Europe where the Germany growth forecast has been cut from 5.2% to 3.5%,” he wrote, warning of “a deeper and longer Chinese slowdown”.The US dollar index held at 93.932 — between a one-year high of 94.563 hit earlier in the month and a one-month low of 93.483 on Monday.

 

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