July 21, 2024

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European Stocks Close Lower As Rate Concerns Resurface

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European stocks closed lower on Thursday on concerns the Federal Reserve might not reduce interest rates more than one time this year despite soft consumer price and producer price inflation data.

The Fed held interest rates steady but cautioned that inflation is still too high to start cutting policy rates.

Closer home, European Central Bank Governing Council member Joachim Nagel warned that consumer price growth in the euro zone is proving stubborn and that he and his colleagues won’t simply lower borrowing costs automatically. Governing Council Madis Muller is due to speak later in the session.

In economic releases today, Eurostat said in a report that industrial output in the euro zone declined by 0.1% in April compared to March.

Elsewhere, German wholesale prices continued to decline in May, albeit at a slower pace, Destatis reported.

Wholesale prices registered an annual decline of 0.7% in May, which was slower than the 1.8% decrease in April.

The pan European Stoxx 600 dropped 1.31%. The U.K.’s FTSE 100 ended down 0.63%, Germany’s DAX ended down 1.96%, and France’s CAC 40 lost 1.99%. Switzerland’s SMI ended 0.59% down.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Netherlands, Norway, Poland, Portugal, Spain and Sweden ended notably lower.

Iceland and Russia edged down marginally, while Turkiye closed higher.

Shares of automakers BMW, Renault, Mercedes Benz and Volkswagen fell today after the European Union announced a hike in tariffs on electric vehicles imported from China, potentially paving a way to trade war.

In the UK market, Intermediate Capital Group ended down 5.36% and Ashtead Group lost 4.6%. Persimmon, RS Group, Land Securities, Kingfisher, Fresnillo, Croda International, Berkeley Group Holdings, Legal & General, Entain, WPP, RightMove, Prudential, Schrodders, Rentokil Initial, Smith (DS), Airtel Africa and IMI lost 2 to 4%.

Halma soared nearly 13.5% after the health and safety device maker posted strong annual results.


2024-06-13 13:07:00

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