European stocks tumbled on Monday, losing ground for a fourth successive session, as fears of an economic recession as a result of rising inflation and higher interest rates triggered heavy selling across the board.
Worries about the impact of severe lockdown restrictions in China’s Shanghai, and disappointing data from China showing a marked slowdown in the country’s export growth in April further dented sentiment.
The pan European Stoxx 600 plunged 2.9%. The U.K.’s FTSE 100 shed 2.32%, Germany’s DAX ended 2.15% down and France’s CAC 40 tumbled 2.75%, while Switzerland’s SMI dropped 2.44%.
Among other markets in Europe, Austria, Belgium, Denmark, Finland, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Spain and Sweden lost 2 to 4%.
Greece and Russia closed moderately lower. Turkey edged up marginally, while Czech Republic ended flat.
Miners led losses as metal prices fell on demand concerns. Energy stocks fell sharply as crude oil prices drifted lower.
In the UK market, Entain plummeted nearly 9%. Scottish Mortgage, Antofagasta, Glencore, Flutter Entertainment, Halma, Anglo American Plc, Whitbread, Melrose Industries and BP lost 5 to 7%.
Pershing Square Holdings, Croda International, Rio Tinto, RS Group, Prudential, Informa, Avast and Smith (DS) ended more than 4% down. Shell, Aveva Group, Aviva, IAG, Dechra Pharmaceuticals, Taylor Wimpey and Natwest Group also declined sharply.
Sainsbury (J), Kingfisher, Tesco, Coca-Cola HBC, Unilever and Hargreaves Lansdown gained 1 to 2.3%.
In the French market, Atos, Accor, WorldLine, Dassault Systemes, Pernod Ricard, Schneider Electric, Veolia, L’Oreal, Teleperformance, Legrand, STMicroElectronics, Publicis Groupe, LVMH, Kering, Capgemini and Safran lost 2.5 to 4.5%.
In Germany, Deutsche Post dropped more than 6.5%. Infineon Technologies shed more than 6%. The company reported that its profit for the second quarter of 2022 climbed to 469 million euros from 203 million euros in the prior year.
Deutsche Wohnen lost more than 4%. The property company posted a decline in funds from operations for the first quarter on lower rent revenues.
MTU Aero Engines, Puma, Vonovia, Adidas, Volkswagen, Allianz, Siemens Healthineers and Siemens lost 2 to 5%.
Shares of multinational online food delivery service firm Delivery Hero tanked 13.3%.
In economic news, eurozone’s investor confidence declined to a near two-year low in May as early indicators suggest that the currency-bloc is moving towards recession following the war in Ukraine, results of a closely-watched survey showed.
The investor confidence index dropped more-than-expected to -22.6 in May from -18.0 in April, the behavioral research institute Sentix said. The score was forecast fall to -20.8.
The third consecutive decline took the index to its lowest since June 2020.
Data from customs office showed France’s trade deficit increased to EUR 12.4 billion from EUR 10.4 billion in February.
Exports dropped slightly by 0.1% from the previous month, while imports advanced 3.5% in March. On a yearly basis, exports and imports grew 18.2% and 27.1%, respectively.
Market Analysis
European Stocks Tumble, Extend Losses To 4th Straight Day
2022-05-09 16:43:20
