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European stock indices experience two-month low in performance

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Ziad Najjar
Ziad Najjar is an Egyptian author who studied business and finance in the United States and has a keen interest in media. He combines his expertise in these fields to create informative and engaging works accessible to a broad audience.

On Wednesday, European stocks recorded their worst results in two months amid concerns about the US debt ceiling and expected unprecedented inflation in the UK.

The composite index of the largest European companies Stoxx Europe 600 fell by 1.8%, reaching 457.65 points, which is the lowest value since April 5 last year.

The German DAX fell 1.9% to a three-week low as all 40 companies included in the index posted lower rates.

Britain’s FTSE 100 fell 1.75%, France’s CAC 40 fell 1.7% (to its lowest level in two months), Italy’s FTSE MIB fell 2.4%, Spain’s IBEX 35 fell 1. 1%. .

UK consumer prices rose 8.7% year-on-year in April. Although the pace of recovery has slowed from 10.1% in March, inflation was higher than analysts’ average forecast of 8.2%.

In Germany, the index of business confidence in the country’s economy fell in May for the first time since October last year. The value of the index, calculated by the Munich Ifo Institute for Economic Research, this month fell to 91.7 points compared to 93.4 points in April (maximum period of 14 months). Analysts at the Wall Street Journal had expected the index to fall to 93 points from the previously announced April level of 93.6 points.

Embracer’s share price plummeted nearly 45% in one day, the Swedish game developer behind the Tomb Raider and Lord series said. of Rings, he negotiated a strategic partnership for seven months, and all the documents were ready for signing, but the counterparty unexpectedly rejected him.

Prices for securities of automakers fell, including Stellantis – by 4.1%, Renault – by 2.8%, Porsche – by 3.9%, Daimler Truck – by 3.6%, Bayerische Motoren Werke AG (SPB: BMW ) – by 1.8%.

The share price of Swiss investment firm Vontobel Holding AG fell 5.7% after the planned departure of CEO Zeno Staub and COO Felix Lenhard was announced.

In addition, the value of shares of luxury goods manufacturers fell, including Hermes International by 0.2%, LVMH Moet Hennessy Louis Vuitton by 2.1%, Christian Dior by 1%.

The Stoxx 600 also posted a 5.9% decline in UK insurers Prudential and Aviva and a 6.9% decline in cruise operator Carnival.

Marks & Spencer was at the forefront of growth among the companies included in the index, and the value of its securities rose by about 13%. The British department store chain increased its pre-tax profit by 21% in its fiscal year 2023, which ended April 1, and announced its readiness to resume paying dividends in about six months. fiscal year, although higher costs due to inflation.

Source: Interfax

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