Falling week close in euro markets with imported pressures

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The main European indices ended the week in negative territory, as the data that showed the American labor market to be overperforming brought a wave of pressure to Europe as well.

In particular, the pan-European Stoxx ended trading at 435.72, down 0.76%, with the tech sector plunging 2.4% as an impressively strong US payrolls picture dashed hopes of a Fed hike.

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Growth stocks, notably the technology sector, had shown a significant recovery globally over the past ten days, as the prospect of a more dovish stance from the Federal Reserve took some of the weight off pressure from higher interest rates.

In the news of the day, however, the US labor market broke all counters, as data showed it added 528,000 seats of work in July, when analysts’ estimates spoke of barely 250,000 seats.

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Which effectively commits the Fed to further aggressive interest rate hikes to combat galloping inflation.

In this climate, in the rest of the European tables, the German DAX closed with losses of 0.65% at 13,573 points, the French CAC 40 fell to 6,472 with the first 0.6%, as well as the British FTSE 100 which lost 0.1% closing at 7,439.

The Italian FTSE MIB moved at a similar rate in the region, which ended with losses of 0.25% at 22,586, while on the other hand the Spanish IBEX managed to save the positive sign but with small gains of 0.08% at 8,168 units.

It is recalled that yesterday Thursday, the Bank of England also increased its interest rates by 50 basis points, while warning that inflation is expected to peak above 13% in October, with the economy entering recession in the fourth quarter.

Elsewhere on the results front, Deutsche Post jumped 5% after reporting double-digit growth in revenue and profit for the latest quarter.

The London Stock Exchange Group also finished with strong gains of over 3.8% after announcing earnings that exceeded estimates.

In contrast, Allianz lost 1.6 percent after the German insurance giant said profits fell 23 percent in the second quarter.

Finally, Rheinmetall took the biggest pressures, which plunged almost 12%, after downgrading its future guidance.

Source: Capital

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