October 4, 2022

Dubai Week

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European stocks hit a two-month low

European stocks hit a two-month low

European stocks, led by sectors including travel, entertainment and technology, hit a two-month low on Monday as fears that China’s Govt-19 restrictions would last too long and rising securities put pressure on sales.
The pan-European Stoxx 600 index ended 2.9 percent lower, touching its lowest level since March 8. Shares of travel and leisure companies fell 6.0 percent to a significant loss
Technology stocks have fallen to an all-time low of 5.0 percent since November 2020, while US and European government bonds have risen to several-year highs with rapid rate hikes aimed at curbing rising inflation.
A member of the European Central Bank’s monetary policy committee said the bank should triple its interest rates this year to combat inflation.
Mining stocks also fell, with its index falling 4.4 percent, while Chinese iron ore futures fell 7 percent due to concerns over demand in the world’s second-largest economy, with data showing that export growth slowed to double digits in April. .
The Stoxx 600 fell more than 5% from its level at the end of April, as coveted controls in China, aggressive monetary policy austerity and the Ukraine war have raised concerns about a global recession. The benchmark has fallen 15.6 percent since reaching an all-time high in January.
The benchmark S&P 500 and the Dow Jones Industrial Average on the Wall Street hit their lowest levels on 2022 on Monday, as investors expected the latest measurements of inflation in the United States.
(Reuters)