With falling, but far from the low day, the European markets closed

The three-day uptrend in European markets “broke” on Wednesday, amid volatile volatility sparked by international worries about a possible recession as a result of drastic monetary tightening moves by many central banks around the world.

The Fed, like the Bank of England and other central banks in Europe and Asia, has raised interest rates dramatically in recent weeks to tackle the inflation rally and plans to raise more in the coming months. The speed with which central banks are tightening their policies worries investors who are now worried about the risk of a global recession.

Concerns intensified Wednesday with the testimony of Federal Reserve Chairman Jerome Powell before a congressional committee. The head of the Fed, on the first day of his two-day deposit in the Committee on Financial Affairs, reiterated the “absolute commitment” of the US Federal Reserve to bring inflation back to the 2% target.

Powell reiterated that the Fed will continue to raise interest rates until there are clear signs that prices are falling towards its target, assuring on the one hand that the US economy is strong and resilient, but on the other hand not ruling out the possibility that The United States is in recession, though it has said that there is currently no indication that such a thing is imminent.

In any case, Powell’s admission that such a possibility is possible has frightened investors, while the chances of investment banks giving for a global recession are increasing.

Lastly, Citigroup, which in today’s report warns that the chance of the global economy going into recession is close to 50%, as central banks accelerate the tightening of monetary policy and the demand for goods weakens.

Amid this uncertainty, European markets today returned to a downward trajectory, after three days of rising, but closing away from the day lows.

In particular, on the board, the pan-European Stoxx 600 index, after falling to 401.24 points, finally closed at 405.74 points with a fall of 0.70%, while a similar course was followed by the European blue chips index, Euro Stoxx 50, who finally finished the day with losses of 0.84% ​​at 3,464.64 points.

In Frankfurt, the DAX closed the day at 13,144.28 points, down 1.11%, although intra-conference fell even below 13,000 points, while in Paris, the CAC 40 also closed away from the day low, at 5,916, 63 points, with losses of 0.81%. In London, the FTSE 100 closed 0.88% lower at 7,089.22 points.

The stock markets of the European region moved in a similar climate, with the FTSE MIB index in Milan losing 1.36% and closing at 21,788.57 points and the IBEX 35 in Madrid closing at 8,145.40 points, with a first 1, 10%.

On the “front” of the companies, the title of Voestalpine closed with a “dip” of almost 13%, after JPMorgan downgraded its recommendation for the share of the Austrian company to “underweight” from “overweight”.

On the other hand, the title of the British retail company JD Sports recorded a “jump” of more than 6.5%, announcing the doubling of its profitability in the last financial year.

At the end of the day, data released today in the United Kingdom showed a new 40-year high for inflation despite the efforts of the country’s central bank to mitigate the upward pressure on prices with successive increases in interest rates. The data showed that annual inflation climbed to 9.1% in May, drawing a new impetus from the jump in food and energy prices.