Macro-pressures on Euro markets, Stoxx 600 down 1% on the week

The main European stock markets ended the last session of the week with losses, in the wake of data showing a record jump in producer prices in Germany, and in coordination with the climate of uncertainty prevailing in the markets worldwide.

Investors appeared cautious as they await new signals on the path of monetary policy in the US and Europe from the crucial central bankers’ meeting next week.

In particular, speeches by officials at the annual economic conference in Jackson Hole, Wyoming will be under the microscope of investors for new data on the path of interest rates as central banks try to rein in the highest inflation in four decades. The most interest is expected to gather the speech of the chairman of the Federal Reserve, Jerome Powell on Friday.

On the dashboard, the pan-European index Stoxx 600 fell 0.77% to 437.36 points, with the travel and leisure sector plunging 3%. In contrast, the healthcare sector was the day’s gainer, up 0.7%. In the week the Stoxx 600 slipped by 1%, losing the positive sign of the previous 5th day.

In the individual indicators, the German DAX lost 1.12% to 13,544.52 in the wake of data showing producer prices hit a record high in July. In particular, producer prices rose 37.2% year-on-year in July, following June’s rise of 32.7%, as announced by the German statistics office. From June, prices rose 5.3% in July, also setting a record.

Fall for French as well CAC 40which recorded losses of 0.94% at 6,495.83 units, while the British FTSE 100 resisted negative trends with small gains of 0.11%, closing at 7,550.37 points.

It is noted that data released today in the United Kingdom showed that consumer confidence fell in August to the lowest level since 1974 as the inflation rally increasingly weighs on households.

More encouraging were the figures for retail sales which came in better than estimates. The volume of retail sales rose 0.3% in July from the previous month, following a downwardly revised 0.2% fall in June, Britain’s statistics office said. The data defied analysts’ estimates of a further 0.2% drop in sales in a Reuters poll.

In the periphery, the Italian FTSE MIB the Spanish also lost 1.96% to 22,534.57 units IBEX 35 slipped by 1.09% to 8,338.10 points.

In the individual shares, Just Eat Takeaway.com rallied 25.8% to top the Stoxx 600 in the wake of a deal to sell a 33% stake in Brazil’s iFood to tech investor Prosus for up to €1.8bn. The Prosus stock fell 1.3%.

FLSmidth “jumped” 9.8% after its annual sales outlook was revised upwards, while its second-quarter earnings beat forecasts.

British cinema chain Cineworld Group saw its stock tumble after reports said it was preparing to file for bankruptcy after failing to lure moviegoers back to cinemas following the “pandemic lull”. The stock fell 58%

French restaurant and food services group Sodexo lost 1.3% after Jefferies downgraded the stock to “hold” from “buy.”