Sunday, June 23, 2024

The shock of inflation pushes European stocks to a three-month low by Reuters


© Reuters. German DAX Index on the Frankfurt Stock Exchange on Monday. Reuters photo.

(Reuters) – European stocks fell to a three – month low on Monday on rising US inflation and concerns over a strong interest rate hike by the central bank.

The European index closed 2.4 percent lower at its lowest level since March 7.

Large technology stocks fell 4.2 percent as yields on government securities peaked at a multi-year high in a race for faster monetary policy austerity.

Shares of growth-related sectors such as travel and entertainment and automakers fell 5.3 percent and 4.5 percent, respectively.

U.S. consumer prices rose 8.6 percent in May, the biggest rise since 1981, and sentiment turned negative on Friday following sharp sales on Wall Street, raising fears of a 75-point rate. Rise at US Federal Reserve meeting this week.

The region’s stock market volatility index rose to a one-month high.

Concerns over a sharp rise in inflation, austerity measures by major central banks and recent restrictions on the control of the Covit-19 in China have caused the benchmark Stoxx 600 index to fall about 16.5 percent since reaching record levels in January. Recession.

Shares of Eurozone banks also fell 3.1 percent during the trading session.

Among the biggest losers in today’s session was French pharmaceutical maker Volneva, which fell 25.3 percent after issuing a warning about its chances of an anti-Govit-19 vaccine.

(Produced by Waqti Al-Alfi for the Arabic Bulletin)

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Nadia Barnett
Nadia Barnett
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