European shares tumble to 1-month low after tech slump

European shares tumbled on Monday, with tech stocks in the spotlight as bond yields rose on comments from central bank officials that raised fears of aggressive measures to curb inflation amid risks. recession.

The pan-European STOXX 600 index closed down 0.81% to 422.65 points, a low in more than a month, with interest-sensitive technology stocks down 2.4%.

The yield on Germany’s ten-year bond rose 10 basis points to its highest level in two months.

Isabel Schnabel, head of the European Central Bank (ECB), warned over the weekend that central banks must act vigorously to fight inflation, even if it drags economies into recession, while policymakers François Villeroy and Martins Kazaks also signaled another big interest rate hike in September.

His comments followed Federal Reserve Chair Jerome Powell’s warning on Friday that the U.S. central bank will raise borrowing costs as far as necessary to curb growth and keep them there “for some time.” .

“Neither Schnabel nor Villeroy have said what they will favor at the next meeting – they may want to see the August inflation data and revised ECB economic forecasts before deciding,” said Andrew Kenningham, chief economist for Europe at Capital Economics.

Real estate stocks, which are among sectors seen as “defensive” or safer bets in times of economic uncertainty, saw the smallest losses amid a broad sell-off of the STOXX 600.

• In London, the Financial Times index had no operations;
• In Frankfurt, the DAX index fell 0.61% to 12,892.99 points;
• In Paris, the CAC-40 index lost 0.83%, to 6,222.28 points;
• In Milan, the Ftse/Mib index had a devaluation of 0.24%, to 21,841.88 points;
• In Madrid, the Ibex-35 index registered a drop of 0.92%, at 7,989.60 points;
• In Lisbon, the PSI20 index fell by 1.48%, to 6,112.27 points.