Markets Wrap: European Stagflation Concerns Mount, Stocks Experience a Slide

Markets Wrap: European Stagflation Concerns Mount, Stocks Experience a Slide


(Bloomberg) — European ‌stocks extended their slide as weak German data and​ elevated ⁤oil prices reignited stagflation ⁤concerns across the euro area.

Most ⁤Read from Bloomberg

The⁢ Stoxx 600 index retreated 0.6% for the sixth straight session‌ after German factory orders plummeted in July ⁣as the woes of Europe’s biggest economy continued into the third quarter. Fears of stumbling growth and sticky inflation​ were also fanned by Brent crude prices near $90 per barrel after the largest OPEC+ oil producers extended their supply cuts to year-end.

The weakness in Europe and deepening signs​ of an ‍economic slowdown in China put ⁤pressure on equity futures in the US, where signs are mounting that the Federal ⁤Reserve won’t cut interest rates any time soon.

“The euro zone and ⁤UK are ⁤dabbling with recession, which markets had forgotten about three months ago,” ‌said Rupert Thompson, chief economist ⁤at​ Kingswood Holdings Ltd. “It’s clear growth will head in the wrong direction ‍in the coming…

2023-09-06 04:16:20
Article‍ from finance.yahoo.com
rnrn

Exit mobile version