© Reuters.
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Investing.com – The British pound fell to a 37-year low against the US as European equities slid 1.2%.
The pound fell to 1.14 against the US dollar, which has not been the case since 1985, and this is due to the strength of the US dollar and the view that the UK economy will be subject to economic stagnation at the next stage, and this comes in parallel with the death of Queen Elizabeth and the hiring of King Charles to rule Britain as his successor.
The violent atrophy of the British currency emerged soon after UK retail sales fell 1.6% since August, which analysts took as a clear indication of deteriorating consumer capacity in Britain. Concerns flooded European markets following data that was accompanied by fears of continuing interest rate hikes and stock price increases, which put pressure on the capacities of stocks.
It fell by 1% with all sectors entering the red box, while the FTSE 100 (LON 🙂 did not suffer much and the German fell by 1.7% and the French CAC 40 by 1.8 %.
Many sectors fell by 2% or more, including basic resources, construction and industry. Auto shares fell 2.5% despite data showing that new car sales in the European Union rose for the first time in 13 months.
The decline comes to complete a three-day streak of losses for European equities, which hit energy and technology stocks in particular. However, banking stocks rose yesterday after Morgan Stanley (NYSE 🙂 analysts updated the sector.
The World Bank warned yesterday of a global recession in 2023 and said the central bank’s hike may not be enough to reduce inflation.
Shares in the Asia-Pacific region fell on Friday, down 0.96%, despite Chinese industrial production in August and retail sales numbers beating expectations.
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