indexes in this article
PARIS/LONDON (dpa-AFX) – Europe’s stock markets broke off their recent recovery on Wednesday and recorded losses. Concerns about inflation and the accompanying fear of rapid monetary policy countermeasures by the central banks via interest rate increases once again dominated the picture. The US technology stock market Nasdaq, which was very weak in the middle of the week, and very high losses in the retail sector after the US group Target lowered its profit forecast dampened the mood.
The EuroStoxx 50 (EURO STOXX 50) fell by 1.36 percent to 3690.74 points. The situation was similar in Paris, where the leading index CAC 40 fell by 1.20 percent to 6352.94 points. The London FTSE 100 closed 1.07 percent lower at 7438.09 points.
Inflation in the euro zone remains very high. In April, consumer prices rose by 7.4 percent compared to the same month last year, according to a second estimate from the statistics office Eurostat. Inflation is at the March level and thus higher than ever before in the European currency area.
Inflation is also increasing in the UK. According to the statistics office ONS, consumer prices there in April even increased by 9.0 percent compared to the same month last year. This is the highest rate since the latest records began in 1997. By back-calculation, the ONS concludes that the inflation rate was probably last higher around 1982.
Retail stocks also came under pressure in Europe following another forecast cut by a US retailer. After Walmart the day before, it was now Target’s turn. The US group referred to the significant increase in costs in the first quarter, which means that it is likely to be less profitable this year than initially targeted. In Europe, this had a sometimes significant negative impact on the prices of Carrefour, Ocado (Ocado Group) and Tesco and, to a lesser extent, Ahold Delhaize (Ahold Delhaize (Ahold)).
The weakness in the technology sector was particularly noticeable in the EuroStoxx with the shares of Prosus with minus 4.3 percent as the weakest index value and Adyen (Adyen BV Parts Sociales) with a discount of 3.7 percent.
The European Medicines Agency (EMA) is examining the approval of the corona vaccine from the French pharmaceutical company Valneva for the EU market. The company has submitted a corresponding application, it said. It remains unclear when a decision can be expected. This hardly helped Valneva’s share price, which fell by 2.3 percent. Shares plummeted on Monday. The reason was a statement from the company that the EU Commission intends to terminate the supply contract for Valneva’s corona vaccine.
Considerations by Siemens Energy about a possible complete takeover of the subsidiary Siemens Gamesa (Siemens Gamesa Renewable Energy SA) provided a breath of fresh air. The shares of the wind turbine manufacturer jumped 12.6 percent in Madrid. Siemens Energy owns a good two-thirds of Gamesa’s shares. Rumors of a possible complete takeover have been circulating for months. The news also drove other stocks in the sector like Vestas (Vestas Wind Systems AS) on Wednesday, which rose 2.7 percent in Copenhagen./ajx/he