European stock markets recorded negative trading on Friday (16), with investors cautious with the trajectory of inflation and the consequent need for further monetary tightening in the region.
After declines in Asia and a negative morning in New York, several European indices dropped more than 1%.
The pan-European Stoxx 600 index closed down 1.58% at 408.24 points. In the weekly comparison, it fell 2.89%.
On the indicator agenda, the eurozone consumer price index (CPI) rose 9.1% year-on-year in August, at a record high, according to the final reading.
The data reinforces the expectation that the European Central Bank (ECB) will have to raise interest rates aggressively, which tends to be negative for stocks.
The fact that robust tightening is also expected from the Federal Reserve (Fed, the US central bank) contributes to this reaction.
On Thursday (15), the World Bank warned of the risk of a global recession in 2023.
In the UK, retail sales fell 1.6% in August compared to July, when analysts polled by the Wall Street Journal had forecast a decline of 1.4%.
The data translated into more weakness for the pound, which even helped the London Stock Exchange to rise for part of the day – the weaker currency is a positive factor for British exporters.
In any case, the negative tone also prevailed in this square.
On the London Stock Exchange, the FTSE 100 index closed down 0.62%, at 7,236.68 points. In the weekly comparison, the index retreated 1.56%.
In Frankfurt, the DAX index fell by 1.66% to 12,741.26 points. In the week, there was a loss of 2.65%.
On the Paris Stock Exchange, the CAC 40 index dropped 1.31%, to 6,077.30 points, with a drop of 2.17% in the weekly comparison.
In Milan, the FTSE MIB index closed down 1.14%, at 22,110.89 points. For the week, it rose 0.07%.
The IBEX 35 index, on the Madrid Stock Exchange, dropped 1.25% to 7,984.70 points. In the weekly comparison, the low was 0.60%.
In Lisbon, the PSI 20 dropped 1.16%, to 5,845.51 points. For the week, it lost 2.35%.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
