Losses in euro markets as growth concerns rekindled

European stock markets finished trading on a negative note on Tuesday as investors remain cautious just ahead of the Federal Reserve’s monetary policy decisions tomorrow and while the mood was burdened by yesterday’s warnings from the American giant Walmart about the negative impact of high inflation on its results.

The US central bank is expected to announce another interest rate hike of 75 basis points tomorrow as it continues its battle to rein in inflation. The Fed’s aggressiveness, like that of other central banks around the world, has fueled concerns about the growth outlook.

These concerns were intensified today by the International Monetary Fund’s downwardly revised forecasts for the course of global growth.

Global GDP growth will slow to 3.2% in 2022 from the IMF’s previous forecast of 3.6% in April, according to the revised “World Economic Outlook” released today cashier’s desk.

On the board, the pan-European Stoxx 600 index closed with marginal losses of 0.03% at 426.13 points.

Germany’s DAX fell 0.9% to 13,096.93, France’s CAC 40 lost 0.4% to 6,211.45, while Britain’s FTSE 100 closed essentially unchanged at 7,306.28.

In the region, Italy’s FTSE MIB fell 1%, while Spain’s IBEX 35 fell 0.2%.

At the same time, investors are turning their attention to corporate results, with UBS, UniCredit, Unilever, EasyJet, LVMH, Dassault Systemes and Randstad among the European giants that released their quarterly statements today, ahead of the start of the session.

However, the mood was burdened by yesterday’s warning by the retail giant Walmart about the course of its profitability this year. The American giant revised his forecasts downward on full-year earnings, citing high inflation hitting consumer purchasing power.