European Shares Slide On Interest-rate Worries


European stocks fell sharply on Thursday after the latest U.S. inflation data suggested that Fed officials are likely to stick with their approach of raising rates by a half point at each of their next two-three meetings to tame high-flying inflation.

Meanwhile, U.K. GDP advanced 0.8 percent sequentially in the first quarter, slower than the 1.3 percent increase in the fourth quarter and the economists’ forecast of +1.0 percent, data released by the Office for National Statistics showed earlier today.

Nonetheless, monthly GDP was now 1.2 percent above its pre-coronavirus pandemic level.

The pan European Stoxx 600 dropped 2.2 percent to 418.22 after climbing 1.7 percent on Wednesday.

The German DAX gave up 2.3 percent, France’s CAC 40 index declined 2.4 percent and the U.K.’s FTSE 100 was down 2.3 percent.

Miners led losses, with Anglo American, Antofagasta and Glencore plunging 5-7 percent on growth concerns.

Britain’s biggest broadband and mobile operator BT added 1.6 percent after an announcement that it has finalized its much-awaited deal with U.S. media group Warner Bros Discovery to form a joint venture for its sport business.

Residential property business Grainger was up 0.6 percent after it reported strong profit and rental income growth for the first half of fiscal 2022.

Bouygues declined 1.7 percent. The French telecommunications, media and construction company reported net loss of 131 million euros for its first quarter, compared to last year’s profit of 21 million euros.

Franco-Italian chipmaker STMicroelectronics rallied 3 percent after it outlined a path to achieve more than $20 billion in annual sales by 2027 at the latest.

Commerzbank lost 1.6 percent despite the German lender reporting a double-digit percentage growth in its revenues in the first quarter of 2022.

Automaker BMW fell 2.1 percent on going ex-dividend.

Merck KGaA declined nearly 5 percent. The chemical company predicts higher profit and sales for 2022 after earnings and revenue increased in the first quarter.

Conglomerate Siemens plummeted 6.8 percent after announcing it is leaving Russia due to the war in Ukraine.

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