European stock markets fell on Tuesday, continuing to sell stocks, driven by mounting fears of a recession, as central banks tightened monetary policies and shares in London fell on fears about a new economic plan. The German DAX index fell 0.7% to its lowest level, which it had reached in November 2020, while the Italian index lost 1.2%, giving up all its gains due to the results of the general elections, Monday.
The Stoxx 600 index closed 0.1 percent lower after a volatile session that saw it gain 1.3 percent. Gains in mining, energy and health care stocks were offset by sharp declines in banking and utilities shares.
In London, the FTSE index fell 0.5% and the British pound recovered from a record low reached, on Monday, amid concerns about the impact of the “mini-budget” of the United Kingdom.
“The stability of the pound came on the back of expectations that the Bank of England would tighten policy significantly,” said Themos Phyotakis, head of currency research at Barclays in London. There is room for the Bank of England to thwart expectations and if that happens, the pound may resume its downward trend against the dollar.”
The pan-European Stoxx 600 index fell 4.4 percent in the past four sessions as pessimistic data on economic activity in the region, along with a number of central banks raising interest rates, fueled fears of a global economic slowdown.
Nixi shares rose 2.7 percent after the payments company said it estimated it would generate a cash surplus of 2.8 billion euros ($2.70 billion) in 2023-2025 that could be used to seize merger and acquisition opportunities or return capital to shareholders through buybacks and dividends.
(Archyde.com)