The main markets in Europe were in a siege of liquidations, as the successive interest rate hikes by the central banks worldwide intensified the fears for a global recession.
In particular, the pan-European Stoxx 600 index closed with a dip of 2.38% at 403.25 points, falling to a low from February 2021.
Technology companies have been pounding with the SX8P index plunging 4.4%, as emerging market securities are traditionally thought to be hit hardest by rising borrowing costs.
Close up, the SXRP of retail trade also recorded strong losses of 3.8%, mainly due to the brutal dive of 32% of the British ASOS, which warned that the growing inflationary pressures are affecting consumer behavior.
Even greater were the pressures on the European high capitalization of the Stoxx 50, which sank by almost 3%, falling to 3,426 points.
The picture was similar for the individual European boards, where in Germany the DAX closed at -3.35% and 13,033 points, the French CAC 40 lost 2.4% at 5,886 points, as well as the British FTSE 100 which finished with – 3.1% at 7,048 points.
In the region, the Italian FTSE MIB fell by 3.3%, closing at 21,726 points, while the Spanish IBEX 35 reduced the losses to 1.18%, finishing at 8,078 points.
As central banks around the world raise interest rates one after the other and at faster-than-expected rates, the simultaneous drainage of liquidity to tame inflation is increasingly fueling fears of a global recession.
In particular, the US Federal Reserve yesterday raised the largest interest rate increase in the last three decades, since 1994, by 0.75%.
Then today, in a surprise move, the Swiss central bank raised the key interest rate by 0.5%, to its first increase in 15 years, while in England the BoE increased its own by another 25 basis points.
In individual stocks, Zalando with -12.5%, Delivery Hero with -9.8% and Just Eat Takeaway.com with -9.15% showed the worst returns.
Inchcape, on the other hand, finished at the top of the Stoxx 600 with a rise of 3.8% after announcing that it showed increased sales compared to its estimates.
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.
