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Strong losses of more than 2% in the euro markets in the shadow of recession

Major European indices ended with heavy losses of well over 2%, as fears of an impending global recession intensified.

In particular, the pan-European Stoxx 600 closed down 2.1% at 400.68 points, with energy shares falling 6.8%.

Even greater were the pressures on the European high capitalization of the Stoxx 50, which ended at 3,359 points with -2.7%.

In individual European charts, Germany’s DAX plunged 2.9% to close at 12,401 points, France’s CAC 40 lost 2.7% to 5,794 points, as did the UK’s FTSE 100 which ended at 7,025 points with -2.85%.

The picture was similar in the markets of the European region, where in Italy the FTSE MIB plunged 3% to 20,705 points, while in Spain the IBEX 35 lost 2.5%, falling to 7,959 points.

At an individual stock level, Dechra Pharmaceuticals diverged from the general sentiment, posting gains of 5.3% after RBC upgraded the UK veterinary supplies group to “outperform”.

In contrast, Rheinmetall plunged about 10% with Deutsche Bank downgrading the German defense giant’s outlook, as did Prosiebensat 1, which fell 7% after Goldman downgraded its stock to “sell” from “neutral” .”

European indices failed to build on yesterday’s momentum as concerns intensify not only in Europe but also globally about an impending recession.

After all, yesterday it became known that the Sentix index of investment sentiment in the eurozone worsened, falling to its lowest level since May 2020, at the time of the peak of the pandemic, suggesting an “inevitable” recession.

In the same mood, the euro fell to a 20-year low against the dollar today as investors began to scale back expectations of interest rate hikes by the ECB given the risk of a recession in the region.

Source: Capital

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