Original title: [European Express] European stocks plummeted European bond yields hit a multi-month high and a series of lower-than-expected economic data undermined market sentiment.
Source: FX168
Qualcomm Inc, who is worried about the rise in energy costs.Inflation will lead to a further slowdown in economic growth, with European stock markets falling sharply on Wednesday.
As of this release (18:00 Beijing time), the UK's FTSE 100th index, France's CAC index and Germany's DAX index fell 1.76%, 2.17% and 2.34%, respectively.
The pan-European Stoxx 600 index fell 2% in early trading, led by 2.4% decline in travel and leisure stocks, with all sectors and major exchanges falling into negative territory.
European stock markets were not the only ones hit. U. S. stock futures fell sharply in pre-market trading, while Asia-Pacific stocks were mostly lower on Wednesday. Weakness in Asian markets after the New Zealand central bank raised interest rates for the first time in seven years has also affected investor sentiment in Europe, where Romania became the latest emerging country to raise interest rates on Tuesday, and Poland is expected to follow suit on Thursday.
There was more disappointing economic news on Wednesday, with German factory orders falling 7.7 per cent in August, down sharply from a 4.9 per cent rise in July. In addition, retail sales in the euro zone rose only 0.3 per cent in August, below the 0.8 per cent forecast.
In terms of the trend of individual stocks, the British grocery giant Tesco(Tesco) rose 4.7 per cent in early trading after strong results in the first half and an increase in its profit forecast.
Ambu, a Danish medical device company, is warning of revenue growth andEarnings will be lower than the previous guidance after falling more than 9%.
At the same time, oil trading prices hit multi-year highs because of concerns about energy supply, especially after OPEC + decided not to accelerate the pace of production.
Natural gas prices in Europe soared to record highs, dragging down the bond market, with UK 10-year bond yields hitting 1.138 per cent on Wednesday morning, the highest level since May 2019. German 10-year bond yields rose 0.03 percentage points to minus 0.162 per cent on Wednesday, the highest level since June, while US 10-year bond yields rose to a four-month high of 1.5624 per cent.
The International Monetary Fund (IMF) on Tuesday cut its global growth forecast for 2021 to slightly lower than the 6 per cent forecast in July, citing risks associated with debt, inflation and divergence in economic trends after the pandemic.