Equities Indices

European shares fall, tobacco and tech stocks weigh

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European shares are in the red Monday, as fears the US could introduce a menthol cigarette ban hurts tobacco stocks. Tech stocks, meanwhile, slipped over concerns of slower demand from Apple, while news that German-based SAP is buying Qualtrics also hurt.

By 1410 BST, the EUROSTOXX 600 was 0.58% lower, while the EUROSTOX 50 had lost 0.65%. Regional bourses were also in the red. The German DAX fell 1.36%, the French CAC was down 0.50% and the Spanish IBEX declined 0.07%.

Tobacco stocks weigh

Tobacco stocks across the European indices are lower Monday, following news that the US is considering a ban on menthol cigarettes.

The US Food and Drug Administration, FDA, is planning to propose a ban on menthol cigarettes in the country. The news follows an existing ban in Canada and news that the EU is intending to ban those types of cigarettes from 2020.

BAT shares are currently 9.46% lower at £3,001.00, while another British tobacco company, Imperial Brands shares lost 3.38% to trade at £2,657.00.

Tech stocks lose

Tech stocks are also lower across Europe Monday. Those falls come despite an upbeat earnings report from Infineon. Instead, investors are opting to focus on concerns that demand from Apple and Qualcomm could fall.

Meanwhile, SAP shares are also lower as the German-based software firm has agreed to by US data tech business, Qualtrics, for $8 billion in an all-cash deal. The deal, which is expected to close in the first half of 2019, will see Qualtrics continue under the leadership of Ryan Smith, while expanding SAP’s customer base.

SAP share were 3.95% lower at €91.94.

Oil prices

Also having an impact, Monday, are oil-related stocks, which are moving higher as the price of the valuable commodity moves back into the green. News Sunday that Saudi Arabia is planning to cut its oil production levels by 500,000 per day in December, worked to lifts its value.

Brent crude is currently 1.20% higher at around $71.02 per barrel, while US WTI crude is up 1.15% at $60.88.

The price of oil moved lower last week, after peaking in October.

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