European stocks fell on Thursday to extend losses from the previous session, as mounting concerns over high inflation and slowing global growth sent investors flocking to the safe haven of the dollar and bonds.
U.S. retail giants Target and Walmart missed earnings expectations by wide margins and issued back-to-back profit warnings, raising concerns over downside risks to growth.
It is feared that high inflation and the Fed’s tightening monetary policy may weigh on corporate profit margins and consumer spending.
The pan European Stoxx 600 dropped 1.9 percent to 425.56 after declining 1.1 percent on Wednesday.
The German DAX and France’s CAC 40 index both fell around 1.9 percent while the U.K.’s FTSE 100 was down 2.4 percent.
Swiss lender Credit Suisse lost nearly 4 percent after a ratings downgrade by Fitch.
Budget carrier easyJet lost 3.4 percent in London despite reporting second quarter earnings and revenue that topped forecasts.
British Airways owner IAG declined 1.7 percent after it agreed to buy 50 737 Max jets from Boeing Co., expected to be delivered between 2023 and 2027.
Deutsche Boerse fell more than 3 percent. Handelsblatt reported that public prosecutors in Germany have intensified their investigations into the company’s possible involvement in alleged illegal cum-ex transactions.
Italian insurer Assicurazioni Generali rose about half a percent after it posted a smaller-than-expected net profit for the first quarter, despite impairments on its Russian investments.
European Shares Extend Losses Amid Global Growth Worries
2022-05-19 09:34:10
