AGL 8.30 Decreased By ▼ -0.03 (-0.36%)
ANL 10.95 Increased By ▲ 0.25 (2.34%)
AVN 79.70 Increased By ▲ 1.51 (1.93%)
BOP 5.75 Increased By ▲ 0.18 (3.23%)
CNERGY 5.64 Increased By ▲ 0.26 (4.83%)
EFERT 79.36 Increased By ▲ 0.71 (0.9%)
EPCL 67.48 Decreased By ▼ -0.31 (-0.46%)
FCCL 14.89 Increased By ▲ 0.39 (2.69%)
FFL 6.70 Increased By ▲ 0.10 (1.52%)
FLYNG 7.16 Increased By ▲ 0.13 (1.85%)
GGGL 11.60 Increased By ▲ 0.26 (2.29%)
GGL 17.51 Increased By ▲ 0.27 (1.57%)
GTECH 8.35 Increased By ▲ 0.05 (0.6%)
HUMNL 7.17 Increased By ▲ 0.11 (1.56%)
KEL 3.14 Increased By ▲ 0.06 (1.95%)
LOTCHEM 35.20 Increased By ▲ 2.33 (7.09%)
MLCF 28.35 Increased By ▲ 0.05 (0.18%)
OGDC 87.70 Increased By ▲ 3.15 (3.73%)
PAEL 16.63 Increased By ▲ 0.18 (1.09%)
PIBTL 6.05 Increased By ▲ 0.20 (3.42%)
PRL 19.46 Increased By ▲ 1.34 (7.4%)
SILK 1.14 No Change ▼ 0.00 (0%)
TELE 11.41 Increased By ▲ 0.31 (2.79%)
TPL 9.20 Increased By ▲ 0.20 (2.22%)
TPLP 20.25 Increased By ▲ 0.37 (1.86%)
TREET 27.10 Increased By ▲ 0.48 (1.8%)
TRG 96.20 Increased By ▲ 1.70 (1.8%)
UNITY 20.85 Increased By ▲ 0.48 (2.36%)
WAVES 13.90 Increased By ▲ 0.27 (1.98%)
WTL 1.34 Increased By ▲ 0.03 (2.29%)
BR100 4,275 Increased By 67 (1.59%)
BR30 15,794 Increased By 348.3 (2.26%)
KSE100 42,872 Increased By 628.4 (1.49%)
KSE30 16,219 Increased By 247.6 (1.55%)

European shares hit two-month lows on Monday, led by sectors including travel and leisure and technology as a mix of worries over prolonged COVID-19 curbs in China and surging bond yields fuelled selling pressure.

The pan-European STOXX 600 index shed 2.9% to touch its lowest since March 8, with travel and leisure stocks falling 6.0%.

Tech stocks dropped 5.0% to November 2020 lows as U.S. and European government bond yields surged to multi-year highs on bets for faster interest rate hikes aimed at taming a surge in inflation.

Hawkish policymaker Robert Holzmann said over the weekend the European Central Bank should hike interest rates as many as three times this year to combat inflation.

Miners were also afflicted, falling 4.4% as Chinese iron ore futures plunged as much as 7% on concerns about demand in the world’s second-largest economy after data showed April export growth slowed to single digits.

European stocks mark bleak start to May, hit by brief crash

The benchmark STOXX 600 has shed over 5% so far in May, as China’s COVID curbs, aggressive monetary policy tightening and the Ukraine war stoke concerns of a global economic slowdown. The index is down 15.6% since hitting an all-time high in January.

Investors also awaited inflation readings from the United States in the week, with Wall Street’s S&P 500 index and Dow Jones hitting fresh 2022 lows on Monday.

“With a fresh set of tasty inflation numbers due out from a whole host of countries this week, including the U.S., investors are still very much in the sell camp,” said Danni Hewson, financial analyst at AJ Bell.

“Talk of recession is rife as markets really begin to price in a series of interest rate rises as central banks remain under pressure to help people out of the cost-of-living crisis they’ve found themselves slap bang in the middle of.”

Adding to the gloom, investor morale in the euro zone fell in May to its lowest level since June 2020, as the impact of the war in Ukraine on Europe’s largest economy becomes increasingly clear.

“The positive effects of the good Q1 reporting season and activity reopenings could be short-lived,” Michele Morganti, senior equity strategist at Generali Investments said in a note.

Of the nearly 60% of European companies that have reported results so far, 72% have topped analysts’ profit estimates, as per Refintiv IBES data. In a typical quarter, 52% beat estimates.

Dutch postal firm PostNL slumped 12.9% after it cut its full-year forecast.

BBVA gained 0.7% after Deutsche Bank upgraded the stock to “buy”.

Comments

Comments are closed.