With the left, the European markets entered in June

European stock markets began to decline in June, as weak retail sales in Germany and the slowdown in factory activity in the Eurozone sparked concerns about economic growth, which is expected to be tested in the coming months due to the forthcoming increases.

In particular, retail sales in Germany fell more than expected in April, as food prices rose sharply, according to data released by the Federal Statistical Office, with the index at 5.4% on a monthly basis. base, while estimates spoke of a fall of 0.2%.

Meanwhile, manufacturing activity in the Eurozone slowed last month as continental factories continue to face supply problems while being hit by rising prices and falling demand. Specifically, S & P Global’s PMI manufacturing index fell to an 18-month low in May to 54.6 from 55.5 in April.

At the same time, estimates are growing that the European Central Bank will move more decisively to tackle inflation, which is also expected to have an impact on economic growth.

The central banker of Austria and member of the Board. ECB’s Robert Holtzmann told Bloomberg that the lack of “decisive action” now runs the risk of requiring tougher measures later, which would trigger a recession.

In this context, he said, “an increase of 50 basis points would send the necessary and clear message that the ECB is moving seriously in the fight against inflation.”

The data released yesterday showed that inflation in the Eurozone climbed to a new record at 8.1% in May, exceeding analysts’ estimates. This was the seventh consecutive record high for inflation, with the ECB preparing for a historic policy shift by raising interest rates year-on-year to curb prices.

Deutsche Bank economists now expect a more aggressive interest rate hike from the ECB, seeing a 50 basis point increase in September.

Indicators

In the midst of this climate, the pan-European Stoxx 600 index, although intra-conference managed to add up to 0.4%, failed to maintain its momentum and finally completed the first session of June with losses of 1.05%, at 438.72 points.

It is recalled that the pan-European index fell 1.6% in May, amid concerns about more aggressive action by the central bank and fears about the impact on the economic development of the Russian war in Ukraine.

In the individual stock markets, the DAX index in Frankfurt closed with small losses of 0.33% at 14,340.47 points, while in Paris the CAC 40 fell by 0.77% to 6,418.89 points. In London, the FTSE 100 index fell for the first time in the last five days, recording losses of 0.98%, at 7,532.95 points.

In the region, the FTSE MIB index in Milan ended Wednesday’s session with losses of 0.90%, at 24,283.56 points, while in Madrid the IBEX 35 closed at 8,747.20 points, down 1.18%.