Market Overview

European stock markets experienced a downturn on Monday, as investors grew increasingly concerned about the global economic outlook. The uncertainty was further exacerbated by the UK's fiscal policy announcements, leading to a significant impact on market sentiment.

Impact of UK Fiscal Policy

In the United Kingdom, the government's budget plan has pushed borrowing costs to their highest levels in decades. This has resulted in a sharp increase in yields on government bonds, reaching levels not seen since 1998, and has also led to a further weakening of the pound sterling.

Stock Performance

Major indices across Europe reflected the market's unease. The DAX index in Germany fell by 0.44%, with Heidelberg Materials seeing a notable decline of 2.15%. Similarly, the Euro Stoxx 50 dropped by 0.48%, with Adyen NV experiencing a significant slide of 5.54%. The UK's FTSE 100 decreased by 0.25%, and International Consolidated Airlines Group S.A. saw a substantial slump of 3.58%. In France, the CAC 40 index slipped by 0.31%, with Unibail-Rodamco-Westfield SE shedding 3.33%.

Currency Movements

The euro and the pound sterling both weakened against the US dollar. The euro lost 0.36%, trading at 1.02107, while the pound sterling dropped by 0.43%, selling at 1.21560.