2023-06-08 20:22:07
European stocks decline, amid expectations that major central banks will raise interest rates once more.
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European stocks closed cautiously lower
European stocks recorded a tepid performance today, Thursday, with a decline in interest rate-sensitive technology and consumer goods stocks, amid expectations that major central banks will raise interest rates once more, and a sharp decline in Vodafone shares cast a shadow over the telecom sector.
The Stoxx Europe 600 index closed little changed, with technology shares down 0.3%.
The British “Financial Times 100” index led the losses of other regional indices, with consumer goods companies such as “Unilever” and the export-dependent “Reckitt Benckiser” group under pressure.
This coincided with the rise of the pound sterling by regarding 0.9% in light of expectations that the Bank of England will raise interest rates, following estimates showed that inflation in Britain is expected to remain high this year.
Fears that the US Federal Reserve may stick to its stance on tightening monetary policy at its meeting next week, as well as expectations that the European Central Bank will continue to tighten its monetary policy, cast a shadow on stocks.
Shares in the telecommunications sector fell 1.1%, with Vodafone’s share declining 5.5% following hitting its highest level in a week yesterday, Wednesday. The share was traded today, Thursday, without the right to dividends.
Yesterday, European stocks fell, affected by the drop in shares of health care companies, and concerns regarding the expectations of interest rates in the eurozone, despite the strong profits achieved by the shares of “Inditex”, owner of the “Zara” brand.
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