Shares in the United Kingdom and Sweden led declines among their European counterparts on Tuesday after inflation data from both countries sparked concerns about interest rates, while stocks exposed to China fell as support measures from Beijing did little to boost investor confidence.
The European STOXX 600 index closed down 0.93%, at 455.57 points, after hitting an intraday low in more than a month, while the London and Stockholm indices fell more than 1%.
British government bond yields rose after data showed that basic household wages reached a new record growth rate, increasing the chances of a rate hike by the Bank of England.
A separate report showed that the pace of inflation in Sweden held steady at 9.3% in July, still too high for the central bank.
Mining companies with exposure to China fell 1.5% to their lowest intraday in more than two years as base metals prices fell after data showed retail sales, industrial production and investment in China rose at a slower-than-expected pace.
Even as China’s central bank cut interest rates on Tuesday, analysts say more support is needed to bolster a difficult post-pandemic recovery.
In London, the Financial Times Index fell by 1.57% to 7,389.64 points.
In Frankfurt, the DAX index fell by 0.86%, to 15,767.28 points.
In Paris, the CAC 40 index lost 1.10% to 7,267.70 points.
In Milan, the Ftse/Mib remained closed.
In Madrid, the Ibex-35 Index fell 0.87% to 9,347.50 points.
In Lisbon, the PSI20 lost 0.63%, to 5,998.75 points.
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