European shares hit two-month lows on Monday, led by sectors such as travel and leisure and technology, as a combination of concerns over prolonged Covid-19 restrictions in China and rising bond yields fueled selling pressure.
The pan-European STOXX 600 index fell 2.90% to 417.46 points to its lowest since March 8, with travel and leisure stocks down 6.0%.
Tech stocks tumbled 5.0% and hit lows since November 2020, with US and European government bond returns jumping to multi-year highs on bets on faster interest rate hikes aimed at contain inflation.
Robert Holzmann, a monetary policymaker who favors a tough approach to fighting inflation, said over the weekend that the European Central Bank would raise rates up to three times this year to fight rising prices.
The benchmark STOXX 600 index has lost more than 5% so far in May as Covid-19 health measures in China, aggressive monetary policy tightening and the war in Ukraine fuel fears of a global economic slowdown. The index is down 15.6% since hitting a record high in January.
- In London, the Financial Times index dropped 2.32%, to 7,216.58 points;
- In Frankfurt, the DAX index fell 2.15% to 13,380.67 points;
- In Paris, the CAC-40 index lost 2.75%, to 6,086.02 points;
- In Milan, the Ftse/Mib index had a devaluation of 2.74%, to 22,832.56 points;
- In Madrid, the Ibex-35 index registered a drop of 2.20%, to 8,139.20 points;
- In Lisbon, the PSI20 index fell by 2.72%, to 5,657.92 points.
Source: CNN Brasil
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