Spanish stocks at 1week lows after election
EZ business downturn deepens in July PMI
Julius Baer climbs after H1 results

July 24 Reuters European equities touched fiveweek highs on Monday as upbeat earnings and hopes that the European Central Bank is near the end of its ratehike cycle offset losses in Spanish stocks after the country39;s general election yielded no clear winner.

Spain39;s benchmark IBEX index dropped 0.8, having hit a near oneweek low earlier, after results from Sunday39;s vote denied both the left and the right bloc an easy path to form a government, pointing to a political gridlock and raising nervousness among investors.

Shares of Madridlisted utilities, which had priced in a victory for rightwing parties, fell. Endesa and Iberdrola fell 3.1 and 0.5, respectively.

A gauge of Spanish lenders that includes Banco de Sabadell, Banco Santander and Caixabank fell 1.6.

Markets seem to have been caught on the hop, having expected a more definitive outcome. In the shortterm, the uncertainty will weigh on Spanish assets as investors wait to see what kind of coalition emerges or whether a new election is required, said Chris Beauchamp, chief market analyst at IG.

However, the panEuropean STOXX 600 edged up 0.1 to hit a fiveweek high.

A survey showed the downturn in euro zone business activity deepened much more than expected in July as demand in the bloc39;s dominant services industry declined and factory output fell at the fastest pace since COVID19…