European stocks plunged on Monday as investors struggled to assess how central banks in Europe and the United States will move this year to curb frantic inflation following easing policies and stimulus measures in previous years to stem the coronavirus crisis. .
The US Federal Reserve is not ruled out to start raising interest rates in March, making a total of four increases this year. At the same time, data released last week showed that inflation in the Eurozone hit a new record in December, climbing to 5% from 4.9% in November. This is expected to trigger even more pressure on the European Central Bank to take action to lower prices.
In this climate, yields on government bonds continue to rise: the yield on the 10-year US climbed today close to a two-year high, while the yield on the corresponding German strengthened to the highest level since May 2019, approaching 0%.
On the board, the pan-European Stoxx 600 index fell 1.5% to 479.04 points, with the technology sector falling 3.6% near a three-month low.
The German DAX fell 1.1% to 145,768.27 points, the French CAC 40 fell 1.4% to 7,115.77 points, while the British FTSE 100 lost 0.5% to 7,445.25 points.
In the periphery, the Italian FTSE MIB fell 1%, while the Spanish IBEX 35 lost 0.5%.
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