Inflation Agony Keeps European Stocks Under Tension
European stocks fell for the third time in a row on Wednesday. Anxiety about rising inflation and its potential impact has slowed profit sentiment for the next season. The STOXX 600 index fell 0.1%. Compensation for retail and tourism/leisure stocks and oil and gas and mining stocks. Investors’ concerns that rising interest rates in response to inflation have shaken global markets. The FTSE 100 has struggled since British inflation hit a 30-year high last month. While the leading Wall Street indexes gave up early profits. It also closed the previous session as consumer prices in the U.S. rose to a four-decade high in March.
Meanwhile, the renewal of earnings caused fluctuations in individual stocks. Tesco, the U.K.’s largest retailer, fell 6%; After being warned that profits were likely to decline this year due to harsh economic conditions.
While the STOXX 600 recovered from the sharp losses of March, The index traded in the narrow range before the first quarter profit season. Wall Street bank JPMorgan Chase & Co will announce profit at the end of the day. Analysts expect STOXX 600 companies’ profits to increase by 25.1% in the first quarter.
Stocks and Concerns
Energy, raw materials, and industrial companies are likely to be the biggest-profit drivers in the quarter; Technologies lag. LVMH rose 1% as strong demand for Louis Vuitton and Dior products boosted sales in the first quarter. The group will continue to raise prices on its fashion labels; However, reasonably to reflect the value of the business. LVMH is expected to continue to do better, thanks to leading brands.
Overall, global markets have stalled due to inflation rates and fears of prolonged war in Ukraine; After Russian President Vladimir Putin announced that peace talks with Ukraine had reached a stalemate. Telecom Italia’s gained 3.8%; Since then, the French telecom group Iliad has been interested in offering TIM’s in-house customer service business.
The post Inflation Agony Keeps European Stocks Under Tension appeared first on forexinsider24.com.