Inflation Threat Deepens European Equity Sell-Off

Business » FINANCE | February 5, 2018, Monday // 11:34| Views: | Comments: 0
  • Send to Kindle
Bulgaria: Inflation Threat Deepens European Equity Sell-Off pixabay.com

European stocks suffered a sharp sell-off at the open on Monday, tracking big drops in Asia as growing inflation expectations and rising bond yields took their toll on equity markets, reported Reuters. 

Europe’s STOXX 600 sank 1.1 percent, in line with euro zone stocks .STOXXE and on track for its sixth straight day of decline. The pan-European index hit a two-month low in early dealing, having given back all the gains it made in the exuberant new year rally.

Among major European equity markets, only Spain and Italy are still higher than at the turn of the year, with the UK the worst performer.

All sectors were in the red on Monday, but the sell-off hit the highest valued parts of the market hardest, with tech stocks .SX8P falling 1.6 percent.

Chipmaker AMS, one of the best-performing European stocks last year, fell 4.5 percent. Siltronic  tumbled 3.7 percent while BE Semiconductor  fell 3 percent.

Results also weighed on some stocks. Ryanair fell 3.5 percent after the airline struck a cautious tone about fares and potential disruption from pilot unions, though it reported rising profits.

Travel and leisure stocks .SXTP were among the worst-performing, down 1.3 percent as shares in airlines Air France , easyJet, IAG  and Lufthansa  fell.

Fiat Chrysler fell 2.7 percent after sources told Reuters late on Friday that the U.S. Justice Department was seeking “substantial” fines in the emissions case against the Italian carmaker. [nL2N1PS26I]

A downgrade to “sell” from DNB drove Hexpol shares down 5 percent, the worst-performing company on the STOXX index.

Finance » Be a reporter: Write and send your article
Tags: European stocks, markets, inflation
Expats.bg All Are Welcome! Join Now!
Advertisement
Advertisement
Please, log in to post a comment.
» To the forumComments (0)
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria