European stock markets wake up with losses dragged by the black day on Wall Street | Economy

The crash on Wall Street this Wednesday is taking its toll on European markets. The stock markets of the Old Continent have woken up this Thursday with sharp declines: the Ibex 35 loses more than 1% and leaves behind 8,400 points. Similarly, Frankfurt, Paris and London are down between 1% and 2%. Investors are thus reversing Tuesday’s rebound as they fear business results will suffer in an environment marked by rising interest rates in the United States, high inflation and uncertainty over the war in Ukraine.

Among the members of the Spanish selective, CIE Automotive, Inditex and BBVA are the most affected values, and fall more than 2%. On the other hand, Pharma Mar, Almirall and Naturgy manage to hold on in the green and advance around 1%. High prices for consumer goods, gas and energy continue to fuel fears of flagging economic growth. The latest bad news in this regard came this week, when the rise in the UK CPI in April to 9% was revealed. The Renta 4 analysis house recalls that the Bank of England itself does not expect to see the price ceiling until October, at levels close to 10%. On the positive side, the plans announced by Shanghai to resume activity and gradually end the confinement could serve as a catalyst in the coming days.

Wall Street suffered its worst day in almost two years on Wednesday. At the close of the session, the Dow Jones dropped 3.6%, the S&P 500 4% and the Nasdaq technology index, the most affected, 4.7%. In addition to the warnings of the US Treasury Secretary, Janet Yellen, about a potential entry of the world economy into a period of stagflation, the results of the retail distribution company Target caused an avalanche of sales in the US stock markets, as they warn. from Link Securities.