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European shares drop on fears of inflation and interest rates

by admin_l6ma5gus
October 6, 2022
in World
0

The pan-European Stoxx 600 index rebounded from the early gains it made in the session and fell 0.6 percent, recording losses for the second consecutive session.

European stocks saw a boost at the start of the week on hopes that the US Federal Reserve and other central banks would switch to a less hawkish approach.

However, the ECB meeting minutes from September 7-8 showed that policy makers are concerned that inflation may long hold at very high levels, making aggressive monetary tightening necessary, even if it leads to a slowdown in growth. .

The European Central Bank raised interest rates by 75 basis points at the last meeting and promised more increases even as the bloc’s nations grapple with rising prices and a cost-of-living crisis.

Most of the sub-sectors on the Stoxx index were in the red, led by the mining and utilities indices declining by nearly two percent.

The FTSE 100 index gave up its early session gains, falling 0.8 percent, while the index of medium-sized companies focused on the domestic market rose 0.4 percent.

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Shares of Shell fell 2.8 percent after the oil giant said its third-quarter profit will fall due to a sharp decline in refining margins and weak natural gas trading revenues.


#European #shares #drop #fears #inflation #interest #rates

Tags: European stock exchangesEuropean stocks
admin_l6ma5gus

admin_l6ma5gus

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