European indices end lower on fears over growth stocks

European stocks tumbled on Tuesday as investors worried about the impact on economic growth of the major central banks’ aggressive monetary policy tightening as they try to tame rising inflation, while retail stocks buckled after a grim warning from US retailer Target.

The pan-European STOXX 600 index closed down 0.28% to 442.88 points, with the retail equity index down 0.9% after Target lowered its quarterly margin forecast for the second time by less than one month.

“Retail stocks have taken a heavy hit since the beginning of the year and I can’t imagine there will be any rest for them in the near future,” said Danni Hewson, financial analyst at AJ Bell.

“That’s why we’re seeing so many mergers and acquisitions right now.”

Australia’s central bank raised interest rates by the heaviest dose in 22 years and signaled further monetary tightening ahead to combat rising prices. This comes as investors await a European Central Bank (ECB) meeting and US inflation data this week.

The ECB has signaled it may make rate adjustments starting next month, and investors are waiting to see whether May’s record inflation will lead to a change in monetary stance at Thursday’s meeting.

  • In London, the Financial Times index dropped 0.12%, to 7,598.93 points;
  • In Frankfurt, the DAX index fell 0.66% to 14,556.62 points;
  • In Paris, the CAC-40 index lost 0.74%, at 6,500.35 points;
  • In Milan, the Ftse/Mib index had a devaluation of 0.81%, to 24,366.19 points;
  • In Madrid, the Ibex-35 index registered an increase of 0.06%, to 8,841.60 points;
  • In Lisbon, the PSI20 index rose by 1.21%, to 6,349.21 points.

Source: CNN Brasil

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