This indiscretion sinks Wall Street at the start and drags down the European stock exchanges, also intimidated by inflation

The start of the week for the European stock exchanges was very difficult. Fears of an inflation outbreak that could weigh on economic growth once again alarm professional investors.

A widespread analysis by the analysts of Goldman Sachs spikes the American stock market and shakes the markets of the Old Continent. This indiscretion sinks Wall Street at the start and drags down the European stock exchanges, also intimidated by inflation, which closed in sharp decline.

Inflation and the rise in interest rates in the United States and Europe are the specters that return to stir the sleep of operators. After the last two negative sessions of the first week of the year, the second also opens with a decline for the main European equity markets.

A hypothesis of the analysts of Goldman Sachs has heavily influenced today’s session. According to a study by the US investment bank, there could be four hikes in interest rates in the US this year.

This indiscretion sinks Wall Street at the start and drags down the European stock exchanges, also intimidated by inflation

Until now, professional traders were convinced that the Fed would raise interest rates 3 times this year. The indiscretion that instead the adjustments could be 4 has alarmed investors. They fear that the rise in inflation in the United States may be greater than that assumed a few days ago.

This uncertainty drove sales in Europe and caused a heavy start on the US stock market. At the end of the session, the Euro Stoxx 50 index lost 1.5%. The German stock market fell by 1.1%, the French one by 1.4%, but the London one limited its losses to half a percentage point.

At the time of the closing of the markets in Europe, the Wall Street indices were showing heavy falls. Both the Dow Jones and the S&P 500 were losing more than one percentage point but the Nasdaq was down more than 2.5%.

The Italian stock exchange was able to partially limit the damage. Piazza Affari closed with a drop of 0.9% and the Ftse Mib (INDEX:FTSEMIB) closed at 27,353 points. Among the largest capitalization stocks, banks defended themselves and closed in positive ground despite the difficult day. Leonardo stands out thanks to the rise of 1.8%. The operators have pushed on the purchases of the title thanks to a news about the company.

The Government will invest 2 billion for Tempest, the new fighter-bomber project launched in 2018 by Italy, the United Kingdom and Sweden.

Nexi, STM, Diasorin and Amplifon, with drops of more than 4%, weighed down the major index of the Italian stock exchange.

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