China Concerns, Rising Interest Rates Push European Stocks to One-Month Low to Close – 04/22/2022

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Written by Anisha Sirkar and Sruthi Shankar

(Reuters) – European shares closed at their lowest levels in nearly a month on Friday as a combination of negative factors such as China’s COVID-19 lockdown and concerns about rapid interest rate increases weighed on global sentiment.

The pan-European Stoxx 600 index closed down 1.79% at 453.31 points, its weakest result since March 25.

The core resources sector, which includes global miners such as Glencore and Rio Tinto, fell 3.6% after metal prices were hit by China’s coronavirus restrictions.

Overall, global stocks hit five-week lows as investors fear that rapid interest rate increases in the US, UK and eurozone, due to rising inflation, will weigh on economic growth.

Federal Reserve Chairman Jerome Powell said Thursday that a 50 basis point increase “will be on the table” when the US central bank meets on May 3-4, while the European Central Bank is likely to raise interest rates. interest before the end of the year, foundation president Christine Lagarde told CNBC on Friday.

In London, the FTSE index fell 1.39% to 7,521.68 points.

In Frankfurt, the DAX index fell 2.48% to 14,142.09 points.

In Paris, the CAC 40 lost 1.99% to 6581.42 points.

In Milan, the Ftse/Mib index fell 2.12% to 24,279.63 points.

In Madrid, the Ibex-35 index registered a decline of 1.84% at 8,652.30 points.

In Lisbon, the PSI20 index fell 0.87% to 6002.91 points.

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