© Reuters. A screen on the Frankfurt Stock Exchange showing the movement of the German DAX stock index on Tuesday. Photo by Reuters
(Reuters) – European stocks fell on Tuesday after improved economic activity in the region fueled speculation that the European Central Bank would have more room to raise interest rates to curb inflation.
The European index fell 0.2% at the close, but rose from its lowest level in the session.
Data showed that business activity in the euro zone made a surprise but modest return to growth in January, adding to signs that the slowdown in the bloc may not be as severe as feared and that the union may escape recession.
The health care and energy sectors of the STOXX 600 fell by 1 percent each.
Financial stocks’ gains limited the losses of banking stocks, which rose 0.6 percent, while industrial stocks rose 0.9 percent.
(Prepared by Muhammad Ali Farag for the Arabic Bulletin – Edited by Mahmoud Abdel-Gawad)
