Major European stock markets closed lower on Thursday, as the session started on positive ground, with investors worried about the global inflation rally and that central banks will not be able to maintain its particularly easing direction for long. their monetary policy.
In particular, the data announced on Wednesday showed that inflation in the Eurozone climbed to 4.1% in October, while in the United Kingdom it jumped to 4.2%, the highest level in ten years.
At the same time, the European Central Bank warned in a stability report that there was a growing risk that the real estate bubble would burst. “The risk of price correction in the medium term has increased significantly amid heightened estimates of housing price overruns,” the ECB said in its semi-annual report.
In addition, he estimated that the slowness of the vaccination rate against Covid-19 in some parts of the world may threaten financial stability, although the economic recovery has already begun.
The current economic recovery, boosted by eurozone business activity, “reduced many of our worst fears about financial scars and increased risk of default” as a result of Covid-19, the ECB said in its half-yearly report. for financial stability.
In this climate, the pan-European Stoxx 600 lost 0.46% to 487.70 points on Thursday, with the oil and gas sector recording the biggest losses with a fall of 1.8%. On the other hand, the automotive sector gained 0.3%.
On the individual dashboard, the German DAX fell by 0.18% to 16,221.73 points, the French CAC 40 slipped 0.21% to 7,141.98 points and the British FTSE 100 lost 0.48% to 7,225.96 points.
In the periphery, the Italian FTSE MIB The Spanish fell 0.59% to 27,661.82 IBEX 35 fell 1% to 8,903.20 points.
In the individual shares Royal Mail jumped 9.7% after the British postal giant announced it would return 400 400m ($ 539.8m) to shareholders and boosted its earnings outlook for the year after a strong first half .
The title of Thyssenkrupp rose 6.3%, after the German group exceeded expectations for profits and increased the outlook for 2022.
The German biotechnology company Evotec also increased by 5% after the announcement of the discovery of a new drug together with the American peer EQRx.
On the other hand, the Polish parcel storage company InPost “dipped” by 15.2%, after reducing its annual forecasts amid the slower-than-expected growth in the e-commerce market.
The British construction group Rotork fell by 7.2%.
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I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
