© Reuters. Screens showing German DAX index data on the Frankfurt stock exchange on Tuesday. Photograph: Reuters.
(Reuters) – European equities fell for a fifth consecutive session on Tuesday as investors are concerned about the prospect of a global economic slowdown and squeezing corporate profits amid rising interest rates as central banks step up. their fight against inflation.
The European index closed 0.6% lower, the lowest level in a week.
The index has fallen 3.7% in the past five sessions, in a state of tension in the equity markets due to data indicating the strength of the US labor market, with Federal Reserve policy makers continuing to adopt an aggressive approach, fueling fears of further interest rate hikes, which would push the economy into recession.
Additionally, the International Monetary Fund lowered its global growth forecast for 2023, warning that economic conditions could worsen next year.
To make matters worse, news that Shanghai and other cities in China have stepped up testing for the coronavirus and reset restrictions to address the rise in COVID-19 cases.
As Europe struggles with rising inflation and escalating political tensions stemming from the Russia-Ukraine crisis, investors await third-quarter earnings data for insights into the impact of policy tightening on markets and on the prospects for economic growth.
The UK blue chip FTSE 100 index fell 1.1%, while the domestic-focused mid cap index fell 1.3%.
Most of the major sectors of the pan-European Stoxx 600 index were in the red, with shares of financial institutions and technology companies leading the index to the downside.
(Prepared by Ahmed El-Sayed for the Arab Newsletter – By Rehab Alaa)
