Stock markets in Europe close lower after data on economic activity in the euro zone

Stock markets in Europe close lower after data on economic activity in the euro zone

The european bags they retreated on Thursday, fearful of a recession after a disappointing indicator on economic activity in the euro zone.

The bag of Paris down 0.56%, London 0.97%, Madrid 0.48%, Milan 0.8% and frankfurt 1.76 percent.

European stocks hit more than a year’s low on Thursday as a slowdown in euro zone business activity heightened growth concerns, while German equities fell 1.8% after the country triggered the alarm” of your emergency gas plan.

The index STOX 600 fell 0.8% and the euro zone banking sector fell 4.5%. Euro zone bond yields also fell, as did the euro.

the german index DAX fell to more than three-month lows as falling Russian gas shipments prompted Thursday’s move, the latest escalation in a standoff between Europe and Moscow since Russia’s invasion of Ukraine that has exposed the bloc’s reliance on Russian supplies.

An S&P Global survey showed euro zone business growth slowed significantly this month, and much more than expected, as consumers worried about rising bills opted to stay home and put off purchases to save money. .

A PMI covering the bloc’s dominant service sector sank to 52.8 from 56.1.

Other economically sensitive sectors such as automakers, mining companies and oil and gas sector stocks fell between 2% and 3.6 percent.

Healthcare, utilities and some luxury names were the only ones to rise on Thursday.

The European Central Bank will raise its deposit rate above zero next month, while Federal Reserve Chairman Jerome Powell reiterated the US central bank’s commitment to rein in inflation even at the risk of an economic downturn.

Traders are lowering their bets on how far central banks will be able to raise interest rates this cycle on fears of a recession.

benchmark index STOX 600 has lost nearly 19% since hitting an all-time high at the close on Jan. 5, and if the losses continue, the index could confirm a bear market with a 20% decline from its recent high.

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