European stocks fall as inflation concerns mount By Reuters

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 12, 2021. REUTERS/Staff

(Reuters) – European stocks headed lower on Wednesday, tracking weakness on Wall Street, as investors grew wary of rising inflationary pressures increasing the chances of an early tightening of monetary policy.

The pan-European index fell 1.1% by 0711 GMT, trading less than 2% below its all-time highs. Euro zone stocks felt the pressure as the euro touched a four-month high, making exports more expensive.

A jump in regulated electricity and gas bills and clothing and footwear prices saw British consumer price inflation more than double in April, data showed on Wednesday.

While central bank policymakers expect the surge to be temporary, investors are worried that the price rises may last for a prolonged period of time, pushing central banks to counter it with policy tightening.

Investors will be watching for more clues on policymakers’ views on inflation when the U.S. Federal Reserve releases its minutes from the latest policy meeting.

A retreat in commodity prices made miners and oil and gas stocks among the top losers in Europe.

Swiss wealth manager Julius Baer inched up 1% after it posted an 8% rise in assets under management for the first four months of 2021.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*