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European equities restrained as weak Chinese data heightened growth concerns

European equities were curtailed on Monday as weak economic data from China further clouded global growth prospects.

next The longest string of weekly losses For global equities since the 2008 financial crisis, the Stoxx 600 stock index in the European region fell 0.1%, reducing losses, after falling 0.8% in early trading.

Futures contracts tracking Wall Street’s S & P 500 continued to fall sharply in Asian and early European trading, down 0.3%. Contracts for the Nasdaq 100 Index have fallen 0.5%, indicating that speculative tech stocks will fall further.

The FTSE All World stock index has fallen by more than 11% since the end of March as the central bank raised interest rates due to rising inflation. Investors are concerned that large economies are not strong enough to withstand high borrowing costs. However, the downtrend in the stock market has been interrupted by a short-term backlash as traders are looking for bargains in the sold-out sector.

“Most of the world economy is basically shrinking,” said Luca Paolini, chief strategist at Pictet Asset Management. “But [stock market] Ratings look more attractive, so there are always people who say the worst is behind us. Buy back the market. ”

Hani Redha, Multi-Asset Portfolio Manager at PineBridge Investments, said:

“In the short term, the market is ripe for a bailout rally,” he said.

data China’s retail sales on Monday showed a 11.1 percent decline from the same month last year to April as a wave of severe coronavirus blockades across the country reduced demand. Industrial production, which analysts expected to rise slightly, fell 2.9%.

Meanwhile, Brussels on Monday Reduce growth forecasts In addition, for the euro area, we raised our inflation outlook to reflect the estimated economic impact of the energy crisis caused by Russia’s invasion of Ukraine.

Goldman Sachs senior chair Lloyd Blankfein told CBS News on Sunday that there was a “very high risk” of the US recession.World’s largest economy Unexpectedly contracted In the first quarter of this year. The consumer price index has also remained at a high level for nearly 40 years.

Earlier this month, the Federal Reserve raised key borrowing costs by 0.5 percent, while Chair Jay Powell said. Said Movements of the same size “should be put on the table in the next few meetings.”

European Central Bank Governor Christine Lagarde signal Last week, financial institutions were ready to discontinue their long-standing policy of keeping interest rates in the currency area below zero.

In Asia, Mainland China’s CSI 300 stock index fell 0.8%, Hong Kong’s Hang Seng Index rose 0.3%, and Tokyo’s Topix traded flat.

Brent crude fell 0.6% to $ 110.92 a barrel.

Yields on 10-year Treasuries, which are inversely proportional to the price of benchmark debt securities, fell 0.01 percentage points to 2.92 percent.

European equities restrained as weak Chinese data heightened growth concerns

Source link European equities restrained as weak Chinese data heightened growth concerns

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