Business & Investment

European equities are facing the worst week since late 2020 as investors are working on the outlook for US rate hikes

Concerns over Wall Street volatility and the timing of US rate hikes surprised investors, putting pressure on European equities on Friday and preparing the main index for the worst week since October 2020.

Stocks Europe 600 Index

It fell 1.6% to 462.81, which was the first losing session in three sessions, but started with a 3.6% plunge in a week. As of Thursday, the index was down 2.4%. Elsewhere, German DAX

2% decrease, CAC 40

FTSE 100 index down 1.7%

It fell 1.3%.

U.S. Stock Index Futures Future Wall Street Weak SessionsDespite the bright results from technology giant Apple.

Fresh economic data showed that the German economy shrank in the fourth quarter due to the high number and limits of COVID-19 cases, the Federal Statistical Office of Germany reported on Friday. GDP decreased by 0.7% after adjustment. This was worse than the Wall Street Journal’s forecast of a 0.5% decline in economist polls.

France’s economy expanded at a much slower pace of 0.7%, following a 3.1% growth in the previous quarter.

The European Central Bank and the Bank of England will hold a monetary policy meeting this Thursday. Following this week’s federal meeting, investors left the impression that interest rate hikes actually started in March.

“This Thursday’s Fed meeting has become much more interesting than expected from a market perspective. We don’t expect the meeting to bring significant new signals to the market, but rising inflation. And more data dependencies, and the difference from the Fed, “said the Danske Bank team, led by Chief Strategist. ECB and Bond Survey, Piet Haines Christiansen.

Signify shares among the companies of interest
+ 11.06%

Following the results of the Dutch multinational lighting company, it rose 11% to the top of the Stoxx 600. Citi’s team of analysts said, “The fourth quarter seems to have been boosted by delayed orders, and some supply chain constraints appear to continue until 2022, but more than expected from this 2021 base. The excellent 2022 growth guidance is still promising. ” Led by Martin Wilkey.

H & M
+ 5.52%

Share rose 3% after Swedish fast fashion retailers said it I will refocus on growthAfter recording a higher-than-expected rise in fourth-quarter net income and sales to return to pre-pandemic levels.

Henkel stock

9% fall after German household products and personal care products company Targeting disappointed investors in 2022.. The company also plans to consolidate its laundry and home care and beauty care divisions into one unit, calling it the Henkel consumer brand and launching a share buyback worth up to € 1 billion ($ 1.11 billion). Said.

Givaudan inventory

5% fall after Swiss flavors and fragrance groups I posted a disappointing result As the input cost rises.

UniCredit stock

Revenues were better than expected, although it fell 1.6% after a major Italian bank reported a significant loss in the fourth quarter of 2021.

Automakers were under pressure at Volvo

The Swedish truck maker led the way south as it earned more than expected, but Beware of continuous production suspension This is due to a shortage of parts and disruption to the supply chain.

European equities are facing the worst week since late 2020 as investors are working on the outlook for US rate hikes European equities are facing the worst week since late 2020 as investors are working on the outlook for US rate hikes

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