European stocks fell 2 on Wednesday as investors grappled with twin concerns that aggressive US interest rate hikes could hurt growth and further sanctions on Russia in the west could fuel inflation further. fell by almost one percent. Its pan-European STOXX 600 index broke a three-day streak, falling 1.5% to post its worst day in nearly a month. Losses were widespread, with technology and travel stocks being the biggest detractors. Federal Reserve Chairman Brian Brainard said he expected US monetary policy to move to a “more neutral stance” later this year as interest rates rise and the balance sheet drains quickly.
Data that further fueled concerns about slowing growth showed that German industrial orders fell more-than-expected in February on weak external demand. Calls for further Fed tightening preceded the minutes of the latest monetary policy meeting. This came as a member of the European Central Bank expressed the need to rein in stimulus to prevent inflation expectations from rising above the central bank’s 2% target.
Her comments sparked a global sell-off. “Markets are reacting to what is likely to be faster and more tightening in US monetary policy than previously assumed,” said Stuart Cole. All European indices have bottomed out,” he said. Senior Macroeconomist at Equiti Capital. Cole added that pessimism was compounded by fears of rising inflationary pressures from the war. The US on Wednesday announced new sanctions against Russian bank and Kremlin officials and their families, and the EU on Tuesday proposed even banning the import of Russian coal and oil.
His next ECB monetary policy meeting is next week. European equity funds faced their first monthly outflow in two years last month as war and energy prices weighed on earnings growth and margin prospects this year. Election nerves also continued to plague investors, with the French stock market falling 2.2% on Tuesday after posting its worst session in almost a month.
Polls showed President Emmanuel Macron would defeat Marine Le Pen in the French presidential election, advance through the first round on April 10 and win on April 24. I get support for this week. Individual stocks fell 3.2% after Danish wind turbine maker Vestas announced its withdrawal from Russia. We have two factories in Russia. Shares of another wind turbine maker, Siemens Gamesa, fell 6.2% after it was reported that a turbine component at a Danish wind farm fell into the sea.
Summary of the news:
- European markets fall on concerns over sanctions and US interest rate hikes
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