European Stocks Follow Asia Lower; G4S Plunges After Orlando Massacre

Gold producers including Randgold and Petropavlovsk buck the negative trend as the price of the commodity rises.

Laura Board Laura Board  Follow Jun 13, 2016 5:09 AM EDT

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European stocks fell on Monday, following Asia lower, amid global jitters about China growth, a U.K. "Brexit" and the Federal Reserve's next move on rates.

The FTSE 100 in London was recently down 0.37% at 6,092.99 as opinion polls continued to show momentum for the "leave" campaign ahead of the June 23 referendum on the U.K.'s European Union membership. In Frankfurt, the Dax was recently down 1.09% at 9,727.34 and in Paris the Cac 40 was recently down 1.08% at 4,260.25.

Restructuring outsourced services provider G4S plunged 6.5% in London after it emerged that alleged Orlando killer Omar Mateeen had been employed by G4S since September 2007. G4S said it was "shocked and saddened" and is cooperating with law enforcement agencies and the FBI. Mateen, who was shot dead, is suspected of killing 50 people and wounding scores more at a nightclub on Saturday. 

In the U.S. the Fed's two-day meeting begins tomorrow, with its rate call due on Wednesday. A hike this week doesn't look likely to be on the agenda following weak payroll numbers for May. 

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Randgold Resources (GOLD) was a lead gainer on the FTSE 100, even as other miners, including Glencore, fell as investors sought the safe haven of gold.  Outside the FTSE 100, Petropavlosk (PPLKF) , another gold producer, also rose.

In Frankfurt financial stocks including Deutsche Bank (DB) , Commerzbank , and Allianz were among the main decliners.

In Milan, UniCredit declined 1.4%. The cash-strapped bank is still looking for a CEO to replace Federico Ghizzoni and Barclays warned the newcomer "will face a difficult task of strengthening the capital position, while trying to avoid profitability declines or creating dilution, in our view." It has an underweight recommendation on UniCredit and a price target of EUR2.70 ($3.04). UniCredit was recently trading at EUR2.35.

Gold on Comex was recently up 0.57% at $1,283.20 an ounce.

Oil fell, with West Texas crude recently down 0.88% at $48.64 per barrel.

S&P 500 mini futures were recently down 0.24%.

Asian stocks ended sharply lower.

In Tokyo, the Nikkei 225 plunged 3.51% to close at 16,019.18 and the Topix fell 3.47% to 1,284.55 as the yen rose.

Chinese stocks fell after data on Chinese industrial output and retail sales data came in broadly in line with expectations, though a key gauge of investment fell short.

The CSI 300 closed down 3.09% at 3,066.34.

In Hong Kong the Hang Seng close down 2.52% at 20,512.99.

Source:Kitco