European Stocks Close Lower Thursday as Inflation Fears Continue

Last Updated: Thursday, June 30, 2022 12:46 PM | MT Newswires

High inflation increasing the risk of aggressive monetary policies and a global recession continue to dominate headlines, pulling down European stocks at close Thursday for the second consecutive day.

The Stoxx Europe 600 was down 1.50%, London's FTSE 100 by 1.96%, the Swiss Market Index by 0.65%, France's CAC by 1.80% and Germany's DAX by 1.69%.

In data news, France reported a 5.8% annual rise in June inflation. The UK's Q1 GDP growth was confirmed at 0.8% on a quarterly basis. In Switzerland, the KOF Economic Barometer fell again, suggesting a subdued outlook for the economy in the next few months.

The Swedish central bank raised its policy rate to 0.75% from 0.25%, with ING saying in a note that it is "highly likely" that Riksbank will again agree on a rate hike at its September meeting. The increase was highly expected and jumpstarted "a summer of aggressive central bank action elsewhere," it added.

A surprise to the market, on the other hand, was Gazprom (GAZP.ME) deciding against the payment of its 2021 dividend, its first cancellation since 1998. It said it is diverting funds to prioritize its investment program amid current market conditions. Meanwhile, one of the Russian company's biggest customers, Uniper (UN01.F), is reportedly in talks for a German government bailout.

The stocks plunged 30.46% and 14.38%, respectively.

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