At actions European markets fell on Wednesday, after data from the inflation From United States above expectations for June fueled bets on a more aggressive monetary policy action by the Federal Reserveat the same time that the European central bank came under pressure after the euro fell below par against the dollar.
The pan-European STOXX 600 index ended down 1% after data showed U.S. consumer prices jumped 9.1% last month, the biggest annual increase in more than four decades amid soaring gasoline costs, food and rent.
The sectors of automobiles and construction and materials had the biggest losses in the European index, with drops of 2.3% and 1.8%, respectively.
“We believe that the Europe has a greater risk of going into recession than the US,” said Ankit Gheedia, head of equity and derivatives strategy for Europe at BNP Paribas.
“Given that stock valuations already reflect a 20% compression of earnings in Europe, we think there will be another 20% drop from that level if there is no gas supply.”
The STOXX 600 index and the euro zone blue-chip index are down 15.4% and 19.6% year-to-date as investors fear aggressive monetary policy tightening will dampen growth.
In London, the Financial Times index fell 0.74%, to 7,156.37 points.
In Frankfurt, the DAX index fell 1.16% to 12,756.32 points.
In Paris, the CAC-40 index lost 0.73% to 6,000.24 points.
In Milan, the Ftse/Mib index had a devaluation of 0.93%, to 21,286.33 points.
In Madrid, the Ibex-35 index registered a drop of 0.87%, at 7,944.90 points.
In Lisbon, the PSI20 index depreciated by 0.97%, to 5,863.41 points.
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I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.