Will the Snicking in Europeans Stocks Continue?


Will the Snicking in Europeans Stocks Continue? 

European stock markets fell on Monday as disappointing UK growth statistics raised worries of an economic downturn in the EU. Meanwhile, the central banks attempt to recover the region’s soaring inflation.

The DAX in Germany was down 1.4 percent at 3:50 a.m. ET (0750 GMT), the CAC 40 in France was down 1.5 percent; the FTSE 100 in the United Kingdom was down 0.9 percent. The UK economy shrunk in April; gross domestic product fell by 0.3 percent; moreover, the manufacturing, services, and construction sectors all fell at the same time for the first time since January 2021, according to data released earlier Monday. This slowdown came ahead of the Bank of England’s policy-setting meeting on Thursday; the central bank will likely announce its fifth straight 25-basis-point rate rise.

Major Stocks on A Fall, Who Is Next?

As investors absorbed the highest year-over-year gain in the US consumer price index since December 1981; the Nikkei in Japan, the KOSPI in South Korea, and the Hang Seng in Hong Kong all fell over 3%, according to figures released on Friday. This shattered hopes that US inflation had peaked and increased the likelihood that the Federal Reserve will continue its aggressive monetary tightening beyond the 50-basis point rises that have already been widely priced in for June and July.

The European Central Bank said late last week that it would raise interest rates by 25 basis points in July, with another hike in September. The report of “ferocious” COVID-19 outbreaks in Beijing’s most populous neighborhood, Chaoyang, added to the market’s troubles. Sanofi (NASDAQ: SNY) stock declined 0.8 percent despite the French drugmaker’s announcement that two studies of the COVID-19 vaccine candidate it developed with GSK (LON: GSK) indicated it might protect against the virus’s primary strains of concern when given as a booster shot.

Oil prices fell on Monday after a slew of new COVID-19 cases in Beijing, China’s capital, dashed hopes of a surge in demand from the world’s top oil importer. The likelihood of additional US monetary tightening to battle rising inflation also weighs on crude prices.

The post Will the Snicking in Europeans Stocks Continue? appeared first on FinanceBrokerage.

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