witnessed European stocks A decline during the week ended, as the Stoxx index continued its losses for the fourth consecutive session, approaching its lowest level since May 12, to incur weekly losses of 3.9%, and the losses of the Stoxx 600 index for all of Europe were wide-ranging, led by a decline of 4.8% in the sector Banks According to Archyde.com.
and saw European stocks A decline of 2.7% at the close of Friday trading following inflation in the United States came in higher than expected, raising the possibility of a recession while trying to central banks Curb prices.
The Stoxx index continued its losses for the fourth consecutive session, approaching its lowest level since May 12, to incur weekly losses of 3.9%, according to Archyde.com.
Italy’s MIB index plunged 5.2%, to its lowest level in three months, Spain’s Ibex fell 3.7%, while other major stock exchanges in the region lost more than 2% each.
The headline inflation rate for May in the United States came in at 8.6%, exceeding expectations of 8.3%, indicating that the Federal Reserve may continue to raise interest rates by 50 basis points until September to combat inflation.
Stocks were hit hard on Thursday following the European Central Bank said it will present its first interest rate hike next month since 2011, and may make a bigger move in September.
“Markets are in a state of nervousness as the sharp rise in inflation is forcing central banks to double down on policy tightening,” said Daval Joshi, chief strategist at BCA Research.
“The most important question is whether central banks will bring the economy into recession to beat inflation,” Joshi added.
Eurozone shares fell 3.1% in trading on Friday.
Concerns regarding demand and growth in China, the world’s second largest economy, also increased, following Shanghai and Beijing imposed new restrictions to combat “Covid-19”.
Among the individual stocks, GlaxoSmithKline rose 1.6 percent following the drug company said that one of its vaccines proved successful in a late stage of trials that included the elderly.
Shares of regional airlines fell as labor strife in Europe raised expectations of travel problems during the busy summer season.
Shares of Ryanair, International Consolidated Airlines, Lufthansa and Wizz Air fell between 1.6 percent and 4.1 percent.
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