Gains were muted for European stocks on Tuesday as investors continued to assess risks from persistently high inflation and slowing growth.
International stock markets have come under pressure amid growing concerns that aggressive interest rate hikes by central banks in Europe and the US will derail global growth, sending the world’s biggest economies into recession.
Inflation shows no signs of slowing as energy prices continue to rally, leaving little room for central banks to ease policy tightening.
Central bank moves will be in focus this week as well. The Bank of England is due to publish its latest half-yearly report on financial stability today.
Today, the Reserve Bank of Australia announced a 50bp increase in interest rates. to 1.35% The Australian dollar fell after the announcement of the RBA decision to $0.6857. The S&P/ASX 200 is up 0.41%.
In this climate, the pan-European index Stoxx 600 rose 0.45% to 411.15 with the travel and leisure sector adding 1.5% and leading gains, while oil and gas shares fell 1%.
The German DAX gains 0.65% to 12,850 units, the French CAC 40 notes small gains of 0.2% at 5,970 units, while the British FTSE 100 registers marginal gains of 0.9% at 7,235 points.
In the periphery, the Italian FTSE MIB adds 0.5% to 21,450 units, while the Spanish IBEX 35 climbing by 0.45% to 8,200 points.
In the individual shares Uniper is up 9%, partially recovering from Monday’s 27% plunge, after the German energy giant has revealed it is in talks with the government for a rescue package of up to 9 billion euros. The government is considering imposing a series of measures that will include loans to the company, taking a stake and passing on part of the cost to consumers, as reported by Bloomberg.
At the bottom of the European blue chip index, German media company ProSiebenSat.1 shed more than 5% after Goldman Sachs downgraded the stock to buy from neutral.
Sta macro of the day, industrial production in France stagnated in May after three consecutive falls, according to data released by the statistics agency Insee. Total industrial production was unchanged from the previous month. Economists had expected output to fall 0.3% on a monthly basis.
The stock markets in the Asia-Pacific region were mostly trading in gains, with South Korea the biggest gainer.
Source: Capital
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