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European stocks fall as inflation fears rattle global markets

19 May 2022 11:36 (UTC +04:00)

European stocks declined on Thursday as global markets are rattled by fears over rampant inflation, APA reports citing CNBC.

The pan-European Stoxx 600 fell 1.6% in early trade, with retail stocks shedding 2.7% to lead losses as all sectors and major bourses slid into negative territory.

The negative trade for European stocks comes after regional markets closed lower on Wednesday as fears over inflation rattled markets on both sides of the Atlantic.

U.K. data showed inflation soared to a 40-year high of 9% in April as food and energy prices spiraled, official figures revealed Wednesday, escalating the country’s cost-of-living crisis.

Stateside on Wednesday, the Dow Jones Industrial Average headed for its biggest loss since 2020 after major retailers warned of rising cost pressures, confirming investors’ worst fears over rising inflation.

Stocks and other risk assets have been pressured by inflation and the Federal Reserve’s attempt to tamp down price increases through rate hikes, which have led to concerns about a potential recession.

Overnight, most Asia-Pacific markets fell sharply on Thursday morning after the heavy losses on Wall Street, but U.S. stock futures were mildly in positive territory.

Earnings came from Julius Baer and EasyJet before the bell, while data releases throughout the morning include euro area construction output for March.

In terms of individual share price movement, HomeServe jumped more than 11% to lead the Stoxx 600 after the British home repair services firm agreed its sale to Canada’s Brookfield Asset Management for $5 billion.

At the bottom of the European blue chip index, French care home operator Orpea fell more than 7% after a French media report alleged potential financial irregularities at the company’s Swiss unit.