CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Stock markets: European stocks dip on German recession fears

By Indrabati Lahiri

15:52, 14 December 2021

Stocks chart
UK stocks traded mostly flat– Credit: Shutterstock

European stocks inched lower Tuesday as Germany, one of region’s strongest economies, totters on the verge of a winter recession on the back of supply chain constraints and Omicron concerns. The German economy may contract c.0.5% in the last quarter of the year and remain subdued for the first part of 2022, the Ifo Institute for Economic Research said in a forecast.

UK stocks traded mostly flat as positive jobs growth data in November highlighted the fact that the British economy and job market successfully navigated furlough schemes and slumps due to the coronavirus pandemic.

Overnight in Asia, Hong Kong’s Hang Seng (.HK50) index dipped.

The US S&P 500 index is lower.


16,908.50 Price
-0.760% 1D Chg, %
Long position overnight fee -0.0261%
Short position overnight fee 0.0042%
Overnight fee time 22:00 (UTC)
Spread 30.0


16,454.10 Price
+1.340% 1D Chg, %
Long position overnight fee -0.0220%
Short position overnight fee -0.0002%
Overnight fee time 22:00 (UTC)
Spread 8.0


16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


36,260.80 Price
+0.920% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 11.0

What’s interesting today: Investors are looking forward to the Bank of England’s meeting later this week, which should provide more insight on monetary policy for the rest of the year as well as the central bank’s outlook for 2022, including any interest rate hikes.

Why are European stocks down today?

Germany on the verge of winter recession: Germany was deemed to be susceptible to a winter recession on Omicron woes and supply chain constraints.

What is your sentiment on UK100?

Vote to see Traders sentiment!
  • What this means: A recession in Germany has the potential to spill over onto other smaller and economically more unstable countries in the European Union resulting in weaker economic growth and slowing demand. This, coupled with Omicron’s already widespread effects could further slow the recovery of financial markets.

Stock markets: key highlights

  • The FTSE 100 (.UK100) index inched up 0.38% to 7258.7 points
  • The Euro Stoxx 50 (.EU50) index declined 0.56% to 4159.7 points
  • Germany’s DAX (.DE40) index dipped 0.08% to 15608.5 points
  • France’s CAC 40 (,FR40) index traded flat at 6943.1 points
  • The leading sectors in the UK were consumer durables and process industries, whereas technology services and mining suffered
  • The US S&P 500 is down 1.13% to 4,616.26.

Market sentiment

  • The CBOE Volatility Index, or VIX (.VIX), a measure of expected fluctuations in US stocks increased to 20.99, as market anxieties increased
  • The US dollar index inched up to $96.49
  • The US 10-year bond yield index dropped to 1.44%

Top stock gainers: UK and Europe

  • The best performing companies in the UK were Berkeley Group Holdings, Smith and British American Tobacco
  • Berkeley Group Holdings last week revised its guidance on the back of an optimistic outlook for the next four years
  • British American Tobacco shares rallied following a stable second half of the year and promising dividend yield
  • The top stock gainers in Europe were Kone, Siemens and Linde
  • Siemens is partnering with LG Energy Solution to deliver battery manufacturing intelligence
  • Linde shares rose after the engineering and natural gas company was reported to be considering a deal with a bioLNG plant from Australia

Top stock losers: UK and Europe

  • The worst performing companies in the UK were Darktrace, Scottish Mortgage Investment Trust and Polymetal International
  • Darktrace this month announced a 30% increase in ransomware attacks
  • Scottish Mortgage Investment Trust reported last month investments in battery recycling and blockchain companies
  • Polymetal International shares struggled to recover from the chip shortage that the company had warned of earlier
  • The top stock losers in Europe were ASML NV, Kering and ING Group
  • ASML NV shares suffered following speculations of insiders selling approximately €7.7m worth of shares
  • Kering shares suffered after the group faced increasing pressure in the eyewear line following LVMH’s heightened interest in the sector

Stocks news: what you need to know today

  • Data Patterns launches an IPO targeting anchor investors
  • BT Group shares dip after Altice increased its stake but didn’t make an offer
  • Omega Diagnostic shares rise on the back of Omicron testing success
  • MIND Technology shares rally on the back of US Navy deal

Read more: European fund managers are bullish on the outlook

Markets in this article

636.70 USD
13.9 +2.240%
692.94 USD
6.64 +0.970%
British American Tobacco - GBP
25.25 USD
-0.07 -0.280%
Darktrace plc
3.4885 USD
-0.051 -1.480%
Darktrace plc
3.4885 USD
-0.051 -1.480%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading