(Reuters) – European stocks erased early gains to close lower on Thursday as hopes for lower inflation were offset by fears of a tightening of monetary policy in the world’s largest economy after better-than-expected data came in. from the United States.
The European index closed 1% lower after climbing as much as 0.5% earlier in the session.
European equities posted strong gains in the previous session as improving consumer sentiment eased in an area of concerns over the economic slowdown.
And that optimism quickly faded as Wall Street’s leading indicators fell after data showed US job opportunities outpace unemployment and after an upward adjustment in GDP in the third quarter, which exacerbated fears. that the US central bank will maintain its restrictive monetary policies for a longer period than hoped.
Dealers and analysts also said that limited trading volumes due to the holiday period also affected the range of market movements.
London’s leading FTSE 100 index fell 0.4% after data showed the British economy contracted more-than-expected in the third quarter.
Interest rate sensitive technology stocks fell 2.5%.
Fears of an economic downturn, with central banks adopting monetary tightening, have dealt a severe blow to European equities this year.
The Stoxx 600 is down about 12.4% so far in 2022, but it is still outperforming the US Standard & Poor’s 500, which is down 20.8% and is on track to post its worst annual performance since 2008.
(Prepared by Salma Najm for the Arab Bulletin – Edited by Ali Khafaji)
