European shares tumbled to three-month lows on Monday after a sharp rise in US inflation raised concerns about an aggressive rate hike by the US central bank.
The pan-European STOXX 600 index closed down 2.41% at 412.52 points to its lowest level since March 7.
High-growth tech stocks lost 4.2% as government bond yields hit multi-year highs on bets of a faster monetary policy tightening, with travel and leisure and automakers also falling 5 .3% and 4.5%, respectively
The mood turned murky after a sharp sell-off on Wall Street on Friday after data showed U.S. consumer prices rose 8.6% in May on a yearly basis, the highest rate since 1981, raising concerns about a further rise, 0.75 percentage point at the Fed meeting this week.
“We have a lot of uncertainty … less growth, more inflation combined with concerns about central banks hitting the brakes too hard,” said Elwin de Groot, senior economist at Rabobank.
The STOXX volatility index rose to a one-month high.
The STOXX 600 has lost nearly 16.5% since hitting a record in January, as fears about rising inflation, monetary policy tightening by central banks and recent Covid-19 restrictions in China raising concerns about a possible recession. .
- In London, the Financial Times index dropped 1.53%, to 7,205.81 points;
- In Frankfurt, the DAX index fell 2.43% to 13,427.03 points;
- In Paris, the CAC-40 index lost 2.67%, to 6,022.32 points;
- In Milan, the Ftse/Mib index had a devaluation of 2.79%, to 21,918.04 points;
- In Madrid, the Ibex-35 index registered a drop of 2.47%, at 8,183.30 points;
- In Lisbon, the PSI20 index depreciated by 1.18%, to 6,016.09 points.
Source: CNN Brasil
