erased European stockswhich made early gains to close lower today, Thursday, as hopes of a decline in inflation were offset by fears of tightening monetary policy in the largest economy in the world, following better-than-expected data in the United States.
The pan-European STOXX 600 closed down 1% following rising as much as 0.5% earlier in the session.
European stocks made strong gains in the previous session, as improved consumer sentiment in the euro zone eased fears of an economic slowdown, according to Archyde.com.
And that optimistic mood faded quickly with the decline in the main indicators on Wall Street, following data showed that job opportunities in the United States exceeded unemployment, and following an upward adjustment to GDP in the third quarter, which exacerbated fears that the US central bank will maintain its tight monetary policies for a longer period than it hopes. markets.
Dealers and analysts also said that limited trading volumes due to the holiday period also affected the range of market movements.
London’s leading FTSE 100 index fell 0.4% following data showed that Britain’s economy contracted more than expected in the third quarter.
Interest rate-sensitive technology stocks fell 2.5%.
Fears of the economy slipping into recession, with central banks adopting monetary tightening, dealt a heavy blow to European stocks this year.
The Stoxx 600 has fallen by 12.4% so far in 2022, but it is still outperforming the US Standard & Poor’s 500, which fell 20.8% and is on track to record its worst annual performance since 2008.