FX.co ★ European Stocks Hover Near Records

European stocks opened the second week of August on a mixed-to-positive note. The STOXX 50 inched up 0.2%, setting a fresh record high, while the STOXX 600 hovered around the flatline, holding near last week’s record levels. In the previous week, the two indices gained 2.6% and 1.7%, respectively.

Risk appetite remained restrained as investors weighed ongoing tensions in the Middle East and awaited greater clarity on the prospects for a potential deal between the US and Iran.

The technology sector was among the strongest performers, with ASML Holding advancing 1.5% and Infineon Technologies adding 2.1%. Luxury names also firmed, as LVMH rose 1% and Hermès gained 0.4%.

On the downside, Vistry slumped more than 8%, making it the weakest stock on the STOXX 600, after the Financial Times reported that Allianz Trade is reducing the credit insurance it provides to the company’s suppliers. The decision threatens to intensify pressure on the cash flow of the already struggling UK housebuilder.