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Strong downward trends in the European stock markets – Deutsche Bank and Commerzbank ‘sink’

European stock indexes are falling sharply on Tuesday, with the German banking sector leading the way, due to the revelation that a large investor sold significant shares in the two largest German banks, Deutsche Bank and Commerzbank.

On the board, the pan-European Stoxx 600 declines by 1.35%, with the other index, Eurostoxx 50with the “heavy papers” of the eurozone, losing 1.88%.

The German DAX declines by 1.96%, with the French CAC to suffer losses of 1.90% and the British FTSE 100 0.94%.

In the periphery, the Italian FTSE MIB “loses” 1.59%, while the Spanish IBEX 35 1.52%.

Deutsche Bank’s share fell 9.5% and Commerzbank lost 8.6%. The management of the former, however, notes that it remains “strongly convinced of the correctness of its strategy”.

Investors are also waiting for the data on the course of inflation (especially consumer prices) in the US in March, which are announced in the afternoon (Greek time), while on Wednesday data on the course of producer prices will be announced. The latter will judge the course of monetary tightening on the part of the Federal Reserve.

Within the week, the round of announcement of results from the banking giants in the USA for the first quarter of 2022 begins, with JPMorgan, Goldman Sachs, Wells Fargo, Citi and Morgan Stanley.

In Europe, moreover, investors are watching closely the developments surrounding the war in Ukraine. Russia’s invasion of the country has created intense volatility in oil and wider commodity markets. UK Secretary of State Liz Tras said last night that London, along with other Western partners, was trying to “confirm” the possible use of chemical weapons by Russia against the besieged Ukrainian defenders of Mariupol.

European Central Bank officials are meeting in Frankfurt on Thursday to discuss their next step in monetary policy and are expected to try to balance the effort to control inflation with growth pressures in the eurozone.

Annual inflation was at its highest level since autumn 1981 in Germany in March, according to final figures released by Destatis.

Consumer prices rose 7.3% year-on-year according to national measurements, respectively, and 7.6% according to European standards, also according to estimates.

Consumer prices rose 2.5% on a monthly basis by both national and European measurement standards.

The increase is mainly attributed to the increase in energy prices by 16.4% on a monthly basis.

Source: Capital

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