European stock market falls due to ended optimism on China
2022.12.29 07:50
European stock market falls due to ended optimism on China
Budrigannews.com – As investors process the rising number of COVID cases in China as well as the economic challenges heading into the new year, European stock markets fell on Thursday, continuing the weakness that was seen overnight on Wall Street.
The in Germany was down 0.3 percent at 03:25 ET (08:25 GMT), the in France was down 0.4 percent, and the in the United Kingdom was down 0.6 percent.
The tech-heavy European stocks have reached a 2022 closing low, the lowest since the beginning of the bear market in November 2021, following the negative sentiment seen at Wall Street’s close on Wednesday.
The news that the United States will, starting on January 5, require airline passengers coming from China to show a negative COVID test result has weighed on sentiment, as Beijing struggles with a surge in cases after lifting almost all pandemic restrictions relatively quickly.
Italy, the first nation in Europe to be severely affected by COVID in early 2020, has also mandated a rapid test for all Chinese passengers entering the country, likely paving the way for the majority of European nations to follow suit.
Earlier on Thursday, there were reports of fresh in a number of Ukrainian cities, including the capital Kyiv, as the war raged on.
In addition, investors continue to be wary of the possibility of high inflation, sluggish economic growth, and the European Central Bank maintaining its monetary policy of tightening throughout the course of the new year.
According to the Financial Times, Dutch central bank president Klaas Knot stated earlier this week that the European Central Bank (ECB) would achieve “quite a decent pace of tightening” through half-percentage point increases with five policy meetings occurring between now and July 2023 before borrowing costs eventually reached their peak by the summer.
The region’s economy only showed a 0.6% decrease year-over-year in November, following a 1.0% increase the month before.
The increase in COVID cases in China, the world’s largest crude importer, dampened expectations for an increase in demand from this important source, which resulted in a decline in oil prices on Wednesday.
U.S. unrefined petroleum inventories fell by 1.3 million barrels in the week finished Dec. 23, as indicated by information provided by the business body , which was not exactly anticipated.
More Dow futures rise in anticipation of economic data
Later in the session, the official weekly figures will be released by the U.S. government in the form of the.
By 03:25 ET, the contract was down 1.6% to $82.62 and futures were down 1.7% to $77.59 a barrel.
Additionally, traded 0.3% higher at 1.0638, while rising 0.1 percent to $1,816.85/oz.
