European shares flat as mining stocks dampen gains

European shares opened flat on Monday, with the pan-European STOXX 600 holding steady at 515.06 points as of 0712 GMT.

The market saw a mixed performance, as falling shares in the basic resources sector, down nearly 1 per cent due to weaker metal prices, countered early gains led by a 1.2 per cent increase in the autos sector.

Investor focus remains on the upcoming first round of France’s parliamentary elections later in the week, where polls indicate a lead for the far-right National Rally (RN) party and its allies. The French benchmark index started the week 0.2 per cent higher amid these political dynamics.

In individual stock movements, Germany’s Zalando saw a sharp decline of 6.7 per cent after Morgan Stanley downgraded the online retailer from “overweight” to “equal weight.”

Conversely, Hochtief, a German construction firm, surged 6.6 per cent following an upgrade from Jefferies, shifting its rating to “buy” from “hold.”.

The Belgian pharmaceutical company Argenx witnessed a notable increase of 7.3 per cent after announcing that the US FDA had approved Vyvgart Hytrulo, a treatment for chronic inflammatory demyelinating polyneuropathy, boosting investor sentiment around the stock.

The market sentiment remains cautious amid geopolitical uncertainties and upcoming election outcomes, influencing sector-specific movements and individual stock performances across Europe.

Attribution: Reuters.