©Reuters. An electronic whiteboard displaying the German DAX index at the Frankfurt Stock Exchange, Germany on Wednesday. Photo: Reuters.
(Reuters) – European stocks fell at close of trading for a fourth straight session on Wednesday, hit by investor anxiety amid growing fears of a global recession, but gains in the healthcare sector limited losses.
The European index fell 0.6% at the close of trading, following the impact of falling Wall Street stocks after major US banks warned of a possible recession next year.
And the latest hike in equities, buoyed by hopes that the Federal Reserve (the central bank of the United States) will slow the pace of interest rate hikes, has come under severe test in recent days after the strength of the US economy fueled fears that the central bank would continue its stringent policy of raising interest rates for a longer period.
Markets are now awaiting a number of interest rate decisions, including those from the Federal Reserve and European Central Bank next week, to get a clearer picture of the direction of monetary policy.
Energy stocks led losses in the Stoxx 600 index, down 2% as prices fell after US data showed an unexpectedly large increase in fuel inventories, leading to concerns about demand in a market already in one state of panic due to the uncertainty of the economy.
Banking sector stocks fell for a third straight session, which also hurt the Stoxx 600 index.
Government bond yields are at multi-week lows amid mixed signals on when inflation will peak.
A survey showed expectations for inflation to rise next year, but expectations for the next three years indicated it would remain unchanged at 3%, which is much higher than the Bank’s 2% inflation target central European.
(Prepared by Amira Zahran for the Arab Bulletin – Edited by Hassan Ammar)
