Stocks in Europe Closed Mostly Lower to Concerns About High Inflation.
London, Friday, 19 August 2022
European equities markets ended the day mainly lower, with Germany's DAX and the benchmark Stoxx 600 both falling by about 1%, as concerns about the market impact of future interest rate hikes to manage sky-high inflation persisted.
The most significant declines were seen in consumer cyclicals and real estate stocks, followed by financials and healthcare firms.
In terms of data, rising energy costs in July led to record monthly and annual rises in German producer prices.
In the meanwhile, as data revealed that retail sales surprisingly rose in July, helped by internet shopping, London shares outperformed and closed in the green.
The Euro Area's inflation hit a new record in July, and the region's Q2 growth was weaker than anticipated, adding to worries that the current oil crisis will have a significant impact on the economies. As a result, the Stoxx 600 index dropped roughly 1% for the week.
(Report by: The Decision Maker – Finance editors in New York)