PARIS/LONDON (dpa-AFX) – Europe’s stock exchanges were gripped by higher oil prices and weak economic data on Wednesday. The Eurozone leading index EuroStoxx 50 (EURO STOXX 50) closed 0.72 percent lower at 4238.26 points and thus fell for the sixth trading day in a row. The French CAC 40 fell another 0.84 percent to 7194.09 points, while the British FTSE 100 fell just 0.16 percent to 7426.14 points.
Oil prices fueled inflation concerns again and with them fears about economic development. As long as inflation remains high, the European Central Bank (ECB) cannot lower the high interest rates that are groaning the economy.
The latest data also fueled economic fears. The order intake of German industry, which is prone to fluctuations, fell surprisingly sharply in July after having risen sharply in the previous month.
Analyst Michael Hewson from broker CMC Markets spoke of really bad data. At a time when the world’s largest economy euro zone is on its knees, it is therefore hard to believe that there are ECB representatives pleading for further interest rate hikes. Around a week before the next interest rate decision, Council member Klaas Knot emphasized the possibility of further tightening of monetary policy. In view of the high inflation forecasts, it is a “tight decision” as to whether another rate hike is necessary, said the head of the Dutch central bank.
In a European industry comparison, Europe’s consumer goods manufacturers suffered the sharpest price declines on Wednesday: Their sub-index in the market-wide Stoxx Europe 600 fell by 2.2 percent. The biggest losers were again the shares of the luxury goods groups LVMH, Kering and Richemont. Statements by Richemont’s Chairman of the Board of Directors, Johann Rupert, also weighed in. At the ordinary general meeting of the Swiss, he let it be known that the constantly higher prices in Europe are now also affecting the willingness of well-heeled customers to buy.
In Copenhagen, Vestas (Vestas Wind Systems AS) came under some pressure with minus 1.6 percent after the British bank Barclays had expressed skepticism about the wind power group.
AstraZeneca (AstraZeneca) titles down 1.2 percent in London. The delayed approval of a drug in the USA had a negative impact here.
In contrast, the index of telecom companies as one of the few winners increased by 0.2 percent. He was supported by a price increase of this magnitude at Telefonica after an entry by Saudi Telecom./gl/nas