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Losses in the European markets, the shares of Deutsche Bank and Commerzbank sank

Losses in the European markets, the shares of Deutsche Bank and Commerzbank sank

European stocks fell on Tuesday as shares of Deutsche Bank and Commerzbank sank after a sell-off, while US inflation data raised concerns about the Federal Reserve’s aggressive approach to tightening its policy. .

On the board, the pan-European STOXX 600 index fell 0.35% to 456.65 points.

Shares of Deutsche Bank and Commerzbank plunged 9.4% and 8.5% respectively in the wake of reports that an unnamed investor had sold more than 5% of shares in German banks.

The German DAX fell 0.5% to 14,124.95 points, the French CAC 40 fell 0.3% to 6,537.41 points, while the British FTSE 100 lost 0.55% to 7,576.66 points.

In the periphery, the Italian FTSE MIB fell 0.3%, while the Spanish IBEX 35 closed with small losses of 0.1%.

Meanwhile, data released today in the US showed that inflation jumped 8.5% year on year in March, slightly exceeding analysts’ estimates for a rise of 8.4%. This is the highest level since 1981. On a monthly basis, the index rose 1.2% to the largest monthly increase since Hurricane Katrina in 2005.

The Federal Reserve does not rule out raising its interest rates by 50 basis points in its next meeting in order to curb the inflation that has climbed to highs over 40 years.

The European Central Bank is also meeting on Thursday, which is expected to remain on hold, despite the price rally in Europe. According to the final data released today by the German Destatis, the annual inflation reached in March the highest level since the autumn of 1981. In particular, consumer prices increased by 7.3% on an annual basis.

Investors, meanwhile, continue to monitor developments around the war in Ukraine. Russia’s invasion of the country has created intense volatility in oil and wider commodity markets. British Foreign Secretary Liz Tras said last night that London, along with other Western partners, was trying to “confirm” the possible use of chemical weapons by Russian forces in Mariupol.

Source: Capital



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