European shares tumbled on Wednesday, led by technology stocks, as inflation concerns and tightening monetary policy dampened optimism around China’s economic recovery, while UniCredit and Commerzbank rallied.
The pan-European STOXX 600 index closed down 1.14% at 433.95 points, after rising just over 3% since Friday.
Tech names tumbled 2.7% as a drop in copper prices weighed on basic materials stocks.
Eurozone inflation hit a record 7.4% in April, boosted by soaring fuel and food costs, the European Union statistics agency said, after reporting a preliminary estimate of 7.5%.
The improvement in optimism on Tuesday, after a drop in Covid-19 cases in China raised hopes for more economic activity, was short-lived.
The STOXX 600, which only made remarkable gains in March of this year, is on track to end May lower. But down 11% year-to-date, the index still outperforms the S&P 500 and MSCI’s global index, which are down more than 14% over the same period.
German Commerzbank AG rose 3.1% and Italy’s UniCredit SpA gained 2% after a report spoke of merger talks scheduled before the possible deal was shelved because of the war in Ukraine.
- In London, the Financial Times index dropped 1.07%, to 7,438.09 points;
- In Frankfurt, the DAX index fell 1.26% to 14,007.76 points;
- In Paris, the CAC-40 index lost 1.20%, to 6,352.94 points;
- In Milan, the Ftse/Mib index had a devaluation of 0.89%, to 24,085.82 points;
- In Madrid, the Ibex-35 index registered an increase of 0.01%, to 8,476.40 points;
- In Lisbon, the PSI20 index depreciated by 0.09%, to 5,828.56 points
Source: CNN Brasil
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