LAST UPDATE: 14:53
European markets recorded a sharp decline in the first session of the week, as the continuing inflation raises fears that central banks will move more aggressively to “tame” it with the risk of leading economies into recession.
The European Central Bank (ECB) announced on Thursday that it was beginning to tighten its monetary policy, announcing its first steps, announcing its first rate hike in more than 10 years by 25 basis points at its next monetary policy meeting in July. another in September, possibly higher, by 50 basis points, which will be determined by the medium-term inflation outlook.
At the same time, the central bank released its latest financial forecasts, revising once again its upward estimates for the course of inflation. In particular, inflation is expected to reach 6.8% this year, well above the 5.1% forecast by the bank in March, while it is expected to fall to 3.5% in 2023 and 2.1% in 2024 ( from 2.1% and 1.9% in its previous estimates).
The climate is also aggravated by the data that saw the light of day on the US inflation on Friday, with the long-awaited report of the consumer price index in May being more disappointing than expected, with the inflation in the USA reaching 8, 6% on an annual basis, exceeding the expectations of economists in the previous month.
On the board, the pan-European Stoxx index on Monday sank 2.32% and stood at 412.90 points, while the Euro Stoxx 50 “loses” 2.55% and moves to 3,507.25 points.
In Frankfurt, the DAX index lost 2.27% to 13,449.28 points, in Paris the CAC 40 fell by 2.42% to 6,037.30 points, while in London the FTSE 100 fell 1.69% and formed at 7,193.52 points.
In the region, the FTSE MIB index in Milan is “diving” 2.54% to 21,975.00 points, while in Madrid the IBEX 35 is moving to 8,210.17 points, with losses of 2.15%.
“Dive” in Asia as well
Asian stocks also fell on Monday amid concerns that high US inflation could force the Fed to pursue a more aggressive policy amid fears of a slowdown in global growth following Beijing’s warning. the pandemic.
The Chinese CSI index fell 0.84% ​​and Hong Kong’s Hang Seng plunged 2.9%.
Japan’s Nikkei was down 2.78%, while South Korea’s Kospi was down 2.78%.
The dollar climbed to 135 yen for the first time in two decades, boosted by a jump in the yield on the US 10-year bond to 3.2%.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
