European stocks slip into the red after early Asia boost

European stocks fell back into the red on Monday as top indices failed to hold onto gains after an initial boost from China.

London’s FTSE 100 started the day more than 50 points higher as investors welcomed the news that the world’s second largest economy was rolling out fresh support measures to help stimulate the ailing property sector.

Chinese property stocks enjoyed a rally following the announcement of new policies, with the sentiment temporarily spreading to Europe.

But the optimism on European shores did not last the day and top share indices closed lower on Monday, despite miners holding onto gains.

The FTSE 100 closed 11.78 points lower, or 0.16%, to 7,452.76.

Other top indices in Europe also slipped back with Germany’s Dax closing 0.1% lower and France’s Cac 40 closing 0.24% lower.

It was an altogether quieter day for global trading with stock markets in the US closed for Labour Day.

Michael Hewson, the chief market analyst for CMC Markets UK, said: “Today’s initial gains have been tempered somewhat by caution that the rally in Asia might be largely a knee jerk response to a narrow rebound in housing sales in two Chinese cities, with the bigger test set to come tomorrow with the return of US markets.

“The biggest movers have been led predominantly by the likes of Glencore and Rio Tinto, while the travel sector is also enjoying a solid day after Ryanair and Wizz Air reported a strong increase in August travel numbers from the same period a year ago.”

The pound was up by 0.3% to 1.2624 US dollars, and edged up by 0.1% to 1.169 euros.

In company news, shares in Superdry slumped to new record lows after shares resumed trading following a temporary suspension.

The fashion retailer’s shares had been suspended after the release of its full-year financial results last week was delayed while auditors finalised a review of the accounts.

But soon after the suspension was lifted on Monday, its share price tumbled to the lowest level during the day since the company listed more than 13 years ago. It was 16.2% lower when markets closed.

Shares in Wizz Air moved higher on Monday after the low-cost airline said it flew nearly a quarter more passengers in August compared to the same month last year.

Rival budget airline Ryanair also said it saw a jump in the number of guests year-on-year last month, but it also revealed that some 63,000 of its passengers had their flights cancelled during last week’s air traffic control failure.

Shares in Wizz Air were 1.4% higher at close.

The biggest risers on the FTSE 100 were Entain, up 32.5p to 1,186p, Glencore, up 8.85p to 436p, IAG Group, up 2.2p to 161.55p, Pearson, up 11.4p to 851.2p, and Weir Group, up 22.5p to 1,864p.

The biggest fallers on the FTSE 100 were Admiral Group, down 59p to 2,371p, Johnson Matthey, down 38.5p to 1,752p, Endeavor Mining, down 27p to 1,593p, Croda International, down 88p to 5,468p, and Vodafone Group, down 1.15p to 72.45p.