{"id":22598,"date":"2022-06-08T16:39:25","date_gmt":"2022-06-08T16:39:25","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2022\/06\/08\/european-stocks-close-lower-again-on-growth-worries\/"},"modified":"2022-06-08T16:39:25","modified_gmt":"2022-06-08T16:39:25","slug":"european-stocks-close-lower-again-on-growth-worries","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2022\/06\/08\/european-stocks-close-lower-again-on-growth-worries\/","title":{"rendered":"European Stocks Close Lower Again On Growth Worries"},"content":{"rendered":"
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European stocks closed lower on Wednesday, extending recent weakness, as worries about economic slowdown, soaring inflation and prospects of tighter monetary policy from central banks continued to weigh on sentiment.<\/p>\n

Downward revisions in global growth forecasts by the World Bank and the Organization for Economic Cooperation and Development hurt sentiment.<\/p>\n

OECD said the global growth is set to slow sharply this year than previously forecast as the war in Ukraine triggered a cost-of-living crisis and the zero-COVID policy of China added to supply chain disruptions.<\/p>\n

Eurozone GDP growth is projected to slow from 5.3% last year to 2.6% this year, and to 1.6% in 2023. Headline inflation is projected to reach 7% this year before falling to 4.6% next year. <\/p>\n

The global economy<\/span> will expand 3% in 2022, which is sharply slower than the 4.5% projected in December, OECD said in its latest economic outlook. The growth rate is seen at 2.75% in 2023.<\/p>\n

A profit warning from Credit Suisse, data showing a less than expected growth in Germany’s industrial production in April, and caution ahead of the European Central Bank’s policy meeting and U.S. inflation data, due on Thursday and Friday, respectively, also contributed to the weakness in the markets<\/span>.<\/p>\n

The pan European Stoxx 600 drifted down 0.57%. Germany’s DAX slid 0.76%, France’s CAC 40 shed 0.8% and the U.K.’s FTSE 100 edged down 0.08%. Switzerland’s SMI ended 0.58% down.<\/p>\n

Among other markets in Europe, Belgium, Denmark, Ireland, Norway, Poland, Portugal, Sweden and Turkey closed weak.<\/p>\n

Czech Republic, Greece, Iceland, Netherlands and Russia ended higher, while Austria, Finland and Spain settled flat.<\/p>\n

In the UK market, Airtel Africa tumbled more than 8%. Royal Mail declined 5.1% and Schrodders ended 3.2% down. ABRDN, Rentokil Initial, Croda International, Segro, Bunzl, SSE, HSBC Holdings, Antofagasta, Standard Chartered, Smith (DS), Diageo and CRH lost 1.4 to 2.5%.<\/p>\n

Melrose Industries soared 11% after the GKN owner announced a \u00a3500m share buyback. Aveva Group gained about 10.7%. Scottish Mortgage climbed 5.05%, while Ocado Group and JD Sports Fashion Group advanced 3.5% and 3.2%, respectively.<\/p>\n

Avast, GSK, Whitbread, Harbour Energy, Prudential, Associated British Foods, Informa, BP, Shell and Natwest Group also ended notably higher.<\/p>\n

In the French market, Atos plunged more than 6%. ArcelorMittal, Air France-KLM, Danone, Pernod Ricard, Orange, Air Liquide, Legrand, Publicis Groupe, Airbus Group, AXA, Veolia, Sodexo and Carrefour lost 1 to 3.4%.<\/p>\n

Renault rallied about 4%. Safran, Faurecia, Valeo and STMicroElectronics posted modest gains.<\/p>\n

In Germany, Deutsche Post shed 3.7%. Deutsche Telekom, Allianz, Munich RE, Fresenius Medical Care, Deutsche Bank, Deutsche Boerse and RWE lost 1.4 to 2.5%.<\/p>\n

HelloFresh climbed 2.3%. Sartorius, Puma, Qiagen, Merck, BMW, Volkswagen and BASF gained 1 to 2%.<\/p>\n

In the Swiss market, Credit Suisse plunged more than 7% following a profit warning. However, the stock rebounded later and closed notably higher.<\/p>\n

Danish shipping giant AP Moeller-Maersk fell 8% on concerns container rates will likely drop significantly amid easing supply chain restrictions.<\/p>\n

In economic news, industrial production in Germany rose a price, seasonally and calendar adjusted 0.7% in April from a month earlier, when output fell a 3.7%, which was revised from 3.9%, Destatis said. Economists had forecast 1% growth.<\/p>\n

On a year-on-year basis, production decreased 2.2% in April after a 3.1% slump in the previous month.<\/p>\n

Ahead of Thursday’s ECB meeting, Eurostat data showed the euro zone economy grew much faster in the first quarter of the year than in the previous three months.<\/p>\n

The final reading for the January-March period showed GDP of the 19 countries sharing the euro rose 0.6% sequentially for a 5.4% annual expansion.<\/p>\n

The UK construction sector expanded at the weakest pace in four months in May, due to a significant fall in residential activity, survey results from S&P Global and the Chartered Institute of Procurement & Supply showed. The CIPS construction Purchasing Managers’ Index fell to 56.4 in May from 58.2 in April. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n