European shares tumbled nearly 1.5% on Thursday and extended declines for a second straight session as dismal results from major retailers highlighted the impact of high US inflation.
European retailers were down nearly 2%, tracking U.S. peers, and weighed heavily on the pan-European STOXX 600 index, which closed down 1.37% at 427.99 points after a 1% decline on Wednesday. -market.
Losses were wide, with all major sub-indices trading in negative territory.
Retailers were hit after Target Corp reported that its quarterly profit fell by half and Walmart cut its profit view as they grapple with rising fuel and shipping costs as consumers shift their spending from shopping for large goods to the essential.
European retailers such as Tesco and Sainsbury’s also warned last month of a hit to full-year profits from rising prices.
The STOXX 600 lost 12% on the year as concerns over Covid-19 in China added to fears of a global recession. But as cases of the disease decline, hopes for a recovery offer some relief to investors.
- In LONDON, the Financial Times index dropped 1.82%, to 7,302.74 points;
- In FRANKFURT, the DAX index fell 0.90% to 13,882.30 points;
- In PARIS, the CAC-40 index lost 1.26%, to 6,272.71 points;
- In MILAN, the Ftse/Mib index depreciated by 0.09%, to 24,065.05 points;
- In MADRID, the Ibex-35 index registered a drop of 0.83%, to 8,406.00 points;
- In LISBON, the PSI20 index rose by 1.31%, to 5,904.72 points.
Source: CNN Brasil