The main European stock markets closed with mixed signs on Friday, ending a week of sharp changes, as international markets react to the tightening of monetary policy by the major central banks around the world.
In this climate, the pan-European Stoxx 600 closed a profit of 0.09% at 403.25 points, with the technology sector leading the profit with an increase of 1.4%. On the other hand, the oil and gas sector fell more than 4%. At the same time, the other pan-European Stoxx 50 added 0.31% to 3,438.46 points.
In the rest of the dashboard, the German DAX gained 0.67% to 13,126.26 points. while the British FTSE 100 fell 0.41% to 7,016.25 points. The French CAC – 40 lost 0.06% to 5,882.65 points.
In the periphery, the Spanish IBEX – 35 added 0.84% to 8,145.90 points and the Italian FTSE MIB gained 0.29% to 21,788.87 points.
At the level of individual shares, ABN Amro rose more than 5.6% as Bloomberg reported that the French BNP Paribas is interested in the acquisition of the Dutch bank. Finland’s Nokian Tires, meanwhile, jumped more than 10 percent after raising its net sales forecast for 2022.
The Stoxx 600 fell 2.5% amid a global sell-off yesterday as aggressive interest rate hikes by central banks in Europe and the US fueled concerns about a global recession.
On Wednesday, the US Federal Reserve raised interest rates by 75 basis points to the largest rate hike since 1994. On Thursday, the Bank of Switzerland followed with its first increase since 2007 and the Bank of England with its fifth. successive increase in its interest rates.
The European Central Bank (ECB) has already announced plans to raise interest rates by 25 basis points in July, and at an emergency meeting this week announced plans to create a new tool to tackle the risk of euro area fragmentation. .
“The more aggressive central bank policies are exacerbating adverse conditions for both economic growth and equities. The risks of a recession are increasing, while achieving a gentle landing for the US economy seems increasingly difficult,” said Mark Haefele. , Head of Investments at UBS Global Wealth Management.
At the macro of the daythe data announced today by Eurostat confirmed the rally of inflation prices to new historical highs.
The data showed that inflation climbed to a record high of 8.1% in May, confirming the initial estimate, after rising by 7.4% in April.
The member of the Board ECB President Klaas Knot warned today that several half-point increases in interest rates could be needed if inflation worsens.
“As long as the ECB does not see inflation fall, we should raise interest rates,” he said.