2023-06-08 17:50:49
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, with the pound sterling rising regarding 0.9 percent, in light of expectations that the Bank of England will raise interest rates, following estimates showed that it is expected to raise interest rates. UK inflation remains high this year.
Data also showed that the eurozone economy entered a technical recession in the first quarter.
Concerns that the Federal Reserve (the US central bank) will stick to its stance of 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.
The sentiment comes following the Bank of Canada raised interest rates to a 22-year high of 4.75 percent on Wednesday, with markets and analysts immediately anticipating another hike next month.
Forecasts now indicate a 74.7 percent chance that the Fed will skip an interest rate hike at its June meeting but will raise in July. For the ECB, traders see a 96.3% chance of a 25bp rate hike next week.
Telecom shares fell 1.1 percent, with Vodafone falling 5.5 percent, following hitting a one-week high on Wednesday. The stock was traded today, Thursday, without the right to distribute dividends.
European real estate storm
In Sweden, shares fell "spp" SBB Real Estate, up 11.7 percent, following S&P downgraded the stock’s credit rating. Swedish TV also weighed in on the crisis-hit real estate company, reporting that the Swedish government would assess whether the sale of some of the real estate owned by the company might have repercussions on national security.
Earlier, quoted "bloomberg" About the company to say, it is currently studying several options "Selling the company or selling sectors of its business or some assets, as well as entering into other strategic deals"At the same time, the company’s board of directors ruled out issuing new shares and offering them for sale.
This development comes three days following the company’s credit rating was downgraded to a high-risk level for the second time, and late on Friday, Fitch Ratings downgraded the Swedish company’s rating to BB-positive, due to its high level of indebtedness and the imminent maturity of the 2023 and 2024 bonds.
Last week, Daniel Barr, head of Sweden’s financial regulator, issued his strongest warning yet regarding the unsustainably high levels of debt that commercial property owners have built up, saying: "We have witnessed an economic situation that has changed dramatically, and it is affecting commercial real estate companies to a great extent".
added "My advice is you should start thinking regarding how to reduce debt"Indicating that the sector has accumulated quantities of debt during the good years of low interest rates that are difficult to maintain now, referring to the increase in capital and the sale of assets, as possible measures to get rid of debt.
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The Stoxx Europe 600 index closed little changed, with technology shares down 0.3 percent.
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, with the pound sterling rising regarding 0.9 percent, in light of expectations that the Bank of England will raise interest rates, following estimates showed that it is expected to raise interest rates. UK inflation remains high this year.
Data also showed that the eurozone economy entered a technical recession in the first quarter.
Concerns that the Federal Reserve (the US central bank) will stick to its stance of 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.
The sentiment comes following the Bank of Canada raised interest rates to a 22-year high of 4.75 percent on Wednesday, with markets and analysts immediately anticipating another hike next month.
Forecasts now indicate a 74.7 percent chance that the Fed will skip an interest rate hike at its June meeting but will raise in July. For the ECB, traders see a 96.3% chance of a 25bp rate hike next week.
Telecom shares fell 1.1 percent, with Vodafone falling 5.5 percent, following hitting a one-week high on Wednesday. The stock was traded today, Thursday, without the right to distribute dividends.
European real estate storm
In Sweden, SBB Real Estate shares fell 11.7 percent, following S&P downgraded the stock’s credit rating. Swedish TV also weighed in on the crisis-hit real estate company, reporting that the Swedish government would assess whether the sale of some of the real estate owned by the company might have repercussions on national security.
Earlier, “Bloomberg” quoted the company as saying that it is currently studying several options, including “selling the company or selling sectors of its business or some assets, in addition to entering into other strategic deals.” At the same time, the company’s board of directors ruled out issuing new shares and putting them up for sale. .
This development comes three days following the company’s credit rating was downgraded to a high-risk level for the second time, and late on Friday, Fitch Ratings downgraded the Swedish company’s rating to BB-positive, due to its high level of indebtedness and the imminent maturity of the 2023 and 2024 bonds.
Last week, Daniel Barr, head of Sweden’s financial regulator, issued his strongest warning yet regarding the unsustainably high levels of debt being accumulated by commercial property owners. very commercial.”
“My advice is the need to start thinking regarding how to reduce debt,” he added, noting that the sector had accumulated amounts of debt during the good years of low interest rates that are difficult to maintain now, pointing to the increase in capital and the sale of assets, as possible measures to get rid of debt.
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