Precise Investors

Tuesday, December 6, 2022
Stocks & Shares

European stocks retreat from record highs

European stocks

The STOXX 600 index dropped 0.1%, with shares in Frankfurt declining 0.3% and Paris sliding 0.1%

European stocks slipped from record highs on Monday in subdued trading due to holidays in major markets, but optimism over a swift economic recovery put the benchmark index on course for its fourth month of gains.

The pan-European STOXX 600 index dropped 0.1% in morning trade, with shares in Frankfurt declining 0.3% and Paris sliding 0.1%.

UK and US markets are closed for a holiday, keeping trading volumes muted across the board.

Among the top drags was Deutsche Bank, down 1.8% after the Wall Street Journal reported that the U.S. Federal Reserve told the German lender it was failing to address persistent shortcomings in its anti-money-laundering controls.

Italian insurer Cattolica soared 12.9% after bigger rival Assicurazioni Generali said it would launch a 1.17 billion euros ($1.4 billion) buyout offer for the company.

Despite ongoing worries about rising inflation, the STOXX 600 was on course to post a 2.6% increase in May as economies gradually reopened after lockdowns and central banks reiterated support to aid the recovery.

Dovish comments from European Central Bank (ECB) policymakers, including from President Christine Lagarde, who said it was too early to discuss slowing its pandemic emergency bond purchases (PEPP), helped support sentiment last week.

All eyes will be on euro zone inflation readings as well as the U.S. jobs data this week as investors try to gauge the path of monetary policy ahead of the Federal Reserve and ECB meetings early in June.

As ECB members have recently highlighted, the rise in inflation is likely to be temporary and due to a number of technical factors rather than to genuine strength in underlying demand, UniCredit analysts wrote in a note.

They said: We agree with this view and expect inflation in the euro area to peak in 4Q and then to ease back toward the 1.5% area or around 1% for core inflation.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply