Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

European shares fall for fourth day on growth worries

Published 07/12/2022, 09:04
Updated 07/12/2022, 17:46
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 5, 2022. REUTERS/Staff/File Photo
STOXX
-

By Amruta Khandekar and Bansari Mayur Kamdar

(Reuters) -European shares fell for a fourth straight session on Wednesday, with investors on edge as global recession fears grew, but losses were limited by gains in healthcare stocks.

The region-wide STOXX 600 closed 0.6% lower, taking cues from Wall Street declines overnight after big U.S. banks cautioned of a likely recession next year.

"There is a sense of nervousness and jitteriness in the markets today," said Victoria Scholar, head of investment at Interactive Investor, citing more volatility as the year-end approaches.

"Markets are not out of the woods yet with headwinds remaining from the gas crisis, inflation, monetary tightening and the threat of recession."

A recent stock rally driven by hopes of a less aggressive Federal Reserve has been tested in recent days after strong U.S. economic fuelled fears that the central bank could keep hiking interest rates for longer.

Markets now await a slew of interest rate decisions, including from the Fed and European Central Bank next week, for further clues on the direction of monetary policy.

On the pan-continent STOXX 600 index, energy stocks led declines, falling 2.0% as crude prices slid after U.S. data showed an unexpectedly large build in fuel stocks, feeding fears about demand in a market already spooked by an uncertain economy.

Banks fell for their third straight session, also weighing on the STOXX 600.

Euro zone government bond yields hit fresh multi-week lows amid conflicting signals about when inflation will peak.

A survey showed rising inflation expectations for the year ahead but expectations for three years ahead were unchanged at 3.0%, well above the ECB's 2% target.

Healthcare shares rose 0.7%. GSK Plc and Sanofi (EPA:SASY) jumped 7.5% and 6.1% respectively, boosting the index after the drugmakers on Tuesday were spared thousands of U.S. lawsuits claiming that the heartburn drug Zantac caused cancer.

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 7, 2022.    REUTERS/Staff

Airbus fell 2.2% as the world's largest planemaker abandoned a numerical forecast for jet deliveries and a date for its key production goal.

Euro zone gross domestic product grew slightly more than initial estimates, Eurostat data showed, with household spending and business investment propping up the economy.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.