February 8, 2023

Dubai Week

Complete Dubai News World


European stocks fell as fears of a recession were heightened by trade growth data

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European stocks fell on Tuesday, as global stock markets observed a slump, with renewed investor concerns about a slowdown in economic growth and inflation due to trade expansion data for May.

The pan-European Stoxx 600 index fell 0.8 percent to 0818 GMT, giving a gain of 1.3 percent on Monday.

Early BMI data showed that business growth in the eurozone slowed this month and a shortage of raw materials was an obstacle to product expansion. This added to concerns about global growth and earlier data showing that Japanese production was expanding at a very slow pace in three months.

Meanwhile, Germany, Europe’s largest economy, is on a growth trajectory with a continued recovery in the service sector, although the demand outlook appears to be bleak amid inflation and supply problems.
German stocks fell 0.8 percent.

All the major sectors recorded a broad decline led by the utility sector. The non-essential consumer goods sector, such as luxury goods, which is vulnerable when disposable income declines, had the biggest impact on the Stoxx 600 index.

The French index, filled with stocks of luxury goods, fell more than one percent, recording the biggest loss among its peers in the region.

The Stoxx 600 is now 12 percent lower than it was this year, with more hits in early January.

Markets have been hit hard by monetary policy austerity to control rising inflation, the Russian-Ukrainian conflict and China’s restrictions on COVID-19, which controls demand in the world’s second-largest economy.

Norwegian advertising agency Advanta reported 4.7 percent higher revenue in the first quarter of the year after reporting higher-than-expected earnings.

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Barclays shares rose 2 percent at the start of a suspended stock repurchase plan worth 1 1 billion.

Shares of British power plants Drox, Centrica and SSE fell 7.9 per cent and 16 per cent, respectively, after the British government reported in the Financial Times that the windfall could extend the profit tax to power companies.