European stocks, led by technology stocks, tumbled on Wednesday as concerns over inflation and tightening monetary policy eased optimism around China’s economic recovery.
The pan-European STOXX 600 index rose 0.6% by 0820 GMT after rising 3.6% from Friday.
Technology shares have slipped 0.7%, while the fall in copper prices has weighed on basic material stocks.
Wednesday’s data showed that British consumer inflation reached 9% in April, the highest level on record, close to the Bank of England’s forecast above 10% later this year.
Susannah Streeter, a senior investment and market analyst at Hargreaves Landsdowne, said:
Investors expect the central bank to link inflation to four interest rate hikes from December.
The European Central Bank is set to raise rates in July, and the US Federal Reserve has also adopted policy tightening, raising doubts about its impact on global economic growth.
“Many companies have been able to offer high value to customers, keeping margins resilient. But concerns about how long consumers will continue to pay are still lingering, “Streiter said.
Shares rallied on Tuesday amid a drop in the Kovid-19 case in China in anticipation of further economic activity and demand from the world’s second-largest economy.
The STOXX 600 is expected to end low in May, marking a gain of শুধুমাত্র only in March this year But with a 10% year-over-year decline, the index still outperformed the S&P 500 and MSCI’s All Country Index, which fell more than 14% over the same period.
In terms of revenue, Euronext recorded quarterly revenue growth of 4.7%. Dutch bank ABN Amro topped the profit estimate but shares fell 9.3% as it warned of the effects of the war in Ukraine.
Siemens Games jumped 11.2%, sources said, adding that Siemens Energy is preparing to buy the remaining parts of the wind turbine manufacturer. The stock is currently valued at 3.14 billion euros (3.31 billion).
Germany’s commercial bank AG Italy rose 1.4% after a report following a timetable for merger talks with Unicred SPA before a potential deal was canceled due to the Ukraine war. Unicredit shares remained unchanged.
Holiday Group TUI fell 11.4% when it announced the sale of shares to return German state bailout elements during the epidemic. (Reporting by Susan Mathew in Bangalore; Editing by Rashmi Ich)