Shares of major European companies fell by more than 2% on Tuesday, the lowest level in the last week, with high yields on government bonds having a negative effect on the shares of high-tech companies, with investor confidence also affected by signs of slowing down. in China, Reuters reports.
The pan-European STOXX 600 index closed down 2.2%, the biggest daily decline in two months. The increase in yields on US Treasury securities signals that investors are preparing for higher interest rates and the risk of persistent inflation, informs News.ro.
The stock of technology in the technology sector fell by 4.8%, to a two-month low, in line with the negative trend in Wall Street stocks.
At the same time, data show that the growth of Chinese industrial firms slowed in August for the sixth consecutive month, with the energy crisis becoming a growing danger to production and profits.
“The pandemic remains unresolved. The Chinese economy is slowing down and the authorities need to continue to stimulate strongly. The Fed is preparing to normalize its policy. And the debt ceiling show (in the US no) is underway. The growing uncertainties, combined with high speculation, suggest a bumpy short-term trajectory, “BCA Research analysts wrote in a note to clients.
The German DAX index fell by 2.1%, the CAC 40 of the Paris Stock Exchange by 2.2%, and the British FTSE 100 index by 0.5%.
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