European shares tumbled on Wednesday after higher-than-expected U.S. inflation cemented views in favor of a big interest rate hike by the Federal Reserve next week, but a rally in oil stocks kept losses under control.
The pan-European STOXX 600 index extended the declines and closed down 0.86% at 417.51 points.
Mining, industrial and consumer stocks weighed the most on the index.
Data on Tuesday, which showed a larger-than-expected rise in U.S. consumer prices in August, strengthened the case for the Fed to deliver a third interest rate hike of 75 basis points next Wednesday. .
Markets were largely hit after the data and European stocks did not benefit from a Wall Street rally on Wednesday. [.NPT]
“Fears of a global recession and concerns about the weaker overall outlook for Europe mean investors are even less interested in buying the dip here than they are in the US,” said Chris Beauchamp, chief market analyst at IG.
With the ECB only at the beginning of its rate hike cycle, as opposed to the Fed, which began earlier this year, the STOXX 600 is down about 14% in 2022 and does better than the S&P 500, which sheds more than 17%, while the Nasdaq technology index is down 25%.
In London, the Financial Times index fell 1.47%, to 7,277.30 points.
In Frankfurt, the DAX index fell 1.22% to 13,028.00 points.
In Paris, the CAC-40 index lost 0.37% to 6,222.41 points.
In Milan, the Ftse/Mib index appreciated by 0.49%, at 22,413.46 points.
In Madrid, the Ibex-35 index registered a drop of 0.10%, at 8,055.60 points.
In Lisbon, the PSI20 index depreciated by 0.84%, to 5,974.62 points.
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.
