European Shares Broadly Lower On Growth Concerns
European stocks were broadly lower on Monday after the latest data out of China showed the gloomy impact of the country’s “zero-COVID” policy.
Closer home, the European Commission cut its growth forecast for the 19 countries sharing the euro to 2.7 percent this year from 4.0 percent predicted in February, citing the impact of the Ukraine war and soaring inflation.
GDP growth is expected to slow to 2.3 percent next year, below the 2.7 percent seen before.
Data showed earlier in the day that German wholesale price inflation advanced to 23.8 percent in April from 22.6 percent in March. This was the biggest rate since records began in 1962.
Euro zone bond yields were up after ECB policymaker Pablo Hernández de Cos said the European Central Bank will likely decide at its next meeting to end its stimulus program in July, and raise interest rates “very soon” after that.
Separately, ECB policymaker Francois Villeroy de Galhau said a weak euro threatened price stability in the currency bloc.
The pan European Stoxx 600 slipped 0.1 percent to 432.87 after climbing 2.1 percent on Friday.
The German DAX and France’s CAC 40 index both dipped around 0.4 percent while the U.K.’s FTSE 100 was up 0.1 percent.
Irish airline Ryanair fell over 3 percent after it posted a 355 million-euro ($369.06 million) net loss for the 12 months ended March.
Italian water pump company Interpump Group jumped 6.3 percent after unveiling its first-quarter results.
British power companies Drax and Centrica jumped 3-4 percent after regulator Ofgem proposed more frequent changes to the energy price cap.
Technical products company Diploma slumped 5.2 percent despite the company posting a rise in first-half pretax profit and revenue.
Vodafone Plc shares rallied 2.8 percent after United Arab Emirates-based telecoms company PJSC bought a 9.8 percent stake in the company for $4.4 billion.
Unilever declined 1.7 percent on concerns that its margins will face pressure due to inflation.
Experian Group shares fell 1.7 percent after the consumer-credit reporting agency agreed to acquire a 51 percent stake in Brazilian fintech company MOVA Sociedade de Empréstimo entre Pessoas S.A. for a cash consideration of 40 million Brazilian reais ($7.9 million).
French drug major Sanofi was down about 1 percent. The company has been ordered to compensate a family whose child suffered from a form of autism caused by its epilepsy drug Valproate.
Ophthalmology company Nicox SA gained about 1 percent after it announced a new governance structure.
Retail group Casino soared 5.5 percent on news it plans to sell its renewable energy unit.
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