LAST UPDATE: 17.55
European stock markets are moving with significant losses of more than 1%, after the announcement of the European Central Bank that it plans to increase interest rates in order to curb inflation, while warning of lower-than-expected growth in the whole of 2022.
In particular, the pan-European Stoxx 600 falls by 1.2%, with the real estate and real estate sectors leading the losses. The other pan-European index, Eurostoxx 50 of high capitalization loses 1.5%.
The German DAX is down 1.5%, with the French CAC 40 to fall by 1.25%, while the British FTSE 100 notes losses of 1.4%.
On the periphery, the Italian FTSE MIB records a decline of 1.7%, while the Spanish IBEX 35 declines by 1.2%.
The ECB’s large-scale bond purchases will be completed in three weeks (July 1), while at the July meeting the Bank’s key interest rate will increase by 0.25%, followed by an increase of the same or higher level if inflation prove persistent.
Stocks in Europe were already under pressure in the year following the shift of central banks around the world to monetary tightening policies, which raise fears of a recession. The war in Ukraine, rising price pressures and disruptions in the supply chain are major concerns for investors.
Recently, Bank of America analysts had revised their estimates for ECB increases to a total of 150 basis points for 2022, with two increases of 50 basis points. in July and September.
Among the individual shares, that of Airbus declines after announcing lower-than-expected deliveries for May. At the same time, those of the semiconductor companies ASML and Infineon Technologies are losing ground after the reports from the American Intel that a weaker economy will hit the demand and the financial performance of the company in the current quarter.