European indices end lower on recession fears

Commodities and bank stocks dragged the pan-European STOXX 600 index lower on Thursday, as growing bets on more aggressive rate hikes by the U.S. central bank stoking recession concerns, while the US main index Italy has plummeted as the country’s government is in danger of collapse.

The STOXX 600 closed down 1.01% at 412.81 points with ample losses.

The index had already fallen 1% on Wednesday as data showed U.S. inflation hit a nearly 41-year high, spurring bets that the Fed could deliver a rate hike of more than 0.75 percentage points. that markets had initially priced in for this month.

Global equities have taken a hit this year as central banks try to tame rising inflation, leaving investors worried about the impact of monetary tightening on economic growth. The STOXX 600 is back about 16% so far in 2022.

Oil and gas and mining stocks followed commodity prices and fell 3.8% each, while bank stocks fell 3.1%. Travel and leisure papers were the only ones to gain, up 0.5%. Italy’s MIB index plummeted to its lowest level since November 2020 after the 5 Star Movement failed to support a parliamentary vote of confidence on Thursday, a move likely to trigger the government’s collapse.

• In London, the Financial Times index dropped 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.