Economy 2 MIN READ

European stocks slump after Wall St rout on rate hike worries

May 12, 2022By Reuters

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European stocks slumped on Thursday, echoing sharp losses on Wall Street overnight, after U.S. inflation data fuelled concerns about the impact of bigger interest rate hikes on economic growth.

The continent-wide STOXX 600 index .STOXX slid 2.2% by 0710 GMT, reversing much of the mid-week gains. Technology .SXPP and mining .SXPP stocks were among the top decliners on the index, with all the sectors trading in the red.

U.S. tech-heavy index Nasdaq .IXIC tumbled over 3% on Wednesday, taking year-to-date losses to 27%, after data showed U.S. consumer prices moderated in April but increased more than economists’ expectations. nL2N2X315F

Meanwhile, UK’s FTSE 100 .FTSE fell 2.1% as data showed Britain’s economy shrank by 0.1% in March. .L nL5N2X427Z

Commerzbank CBKG.DE fell 2.4% despite confirming its full-year net profit target of more than 1 billion euros. nL5N2X41KD

Franco-Italian chipmaker STMicroelectronics STM.MI slipped 0.8% even as it forecast more than $20 billion in annual sales by 2027 at the latest. nL5N2X41K3

French video game group Ubisoft UBIP.PA dropped 3.7% after forecasting lower operating profit for 2022-23. nL2N2X31VQ

(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)

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