Eos Energy stock falls after Fuzzy Panda issues short report
* Daimler falls after profit warning, drags carmakers lower
* London stocks eke out small gains
* MorphoSys jumps on positive blood cancer drug data
(Updates to close)
By Susan Mathew and Medha Singh
June 24 (Reuters) - Weak German economic data and a profit
warning from Daimler weakened European stock markets on Monday
as investors reined in any bets on a fourth week of gains before
G20 meetings that may see more trade talks between the U.S. and
Chinese presidents.
Up 4% so far in June, the pan-European STOXX 600 index
.STOXX closed 0.25% lower on the day, with most of its major
component markets in the red, led by a 0.5% dip in Frankfurt's
DAX .GDAXI .
London's FTSE .FTSE rose 0.1% thanks to gains in defensive
plays including healthcare stocks. Traders also pointed to the
weakness of the pound, which tends to boost the index's
internationally-focused firms.
The main European index .STOXX has shown signs of flagging
in the past week after recouping almost all of its losses from a
sharp sell-off in May, helped by expectations of more monetary
stimulus globally.
Corporate newsflow continues to point to a slowdown in
growth and Mercedes-Benz maker Daimler DAIGn.DE dropped 3.8%
after it cut its 2019 earnings outlook and lifted provisions for
issues related to its diesel vehicles by hundreds of millions of
euros. "The endless array of so-called one-time effects (on
Daimler) raises questions regarding process, management
information systems and ultimately accountability of
management," Evercore ISI analyst Arndt Ellinghorst said in a
research note.
Peers Volkswagen AG VOWG_p.DE and Bayerische Motoren Werke
AG BMWG.DE also slipped, taking the European auto sector
.SXAP down 1.2%.
That, allied to data showing German business morale fell to
its lowest level since November 2014 in June, saw the DAX post
its worst session in a week. U.S. President Donald Trump and his Chinese counterpart Xi
Jinping are expected to discuss trade on the sidelines of the
summit in Japan, after talks to reach a broad deal broke down
last month with the U.S. accusing China of reneging on previous
commitments. "The outcome from the Trump-Xi meeting promises significant
implications for investors who are finalizing their outlooks for
the second half of 2019," wrote Han Tan, Market Analyst at FXTM
in a note.
"While the ... meeting is a meaningful step towards
de-escalating tensions, markets could also be left
disappointed."
The biggest gainer on Europe's main index was MorphoSys
MORG.DE , up almost 6% after it presented data showing its
blood cancer drug met its main goal in a study.