European shares extend losses after worst week in 3 months as recession fears mount

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European shares extend losses after worst week in 3 months as recession fears mount

On Monday, a raft of European stock indices had opened up the session sharply lower amid an increased risk of a global-scale recession, extending last week’s sharp losses. In the matter of the fact, as of mid-day European trading on Monday, the regional pan-European STOXX 600 was trading 0.66 per cent lower to 405.62, hovering at a spitting distance to a yearly low of 400.68 bottomed on July 5.

Besides, London’s FTSE 100 was last trading 0.09 per cent lower to 7228.5 and CAC 40 tumbled nearly 1.0 per cent to 6016.7, while Frankfurt’s DAX was trading 0.14 per cent lower to 12698.1 amid an energy crisis in EU as Nord Stream I halts operation.

Elsewhere in the Europe Madrid’s benchmark index IBEX 35 lost 0.24 per cent to 7,944.3, while Italy’s FTSE MIB shrugged off 0.82 per cent to 21,930.53. In the Asia-Pacific, Aussies wrapped up the day 0.58 per cent lower, while Japan’s Nikkei was nudged 0.45 per cent, however, Hang Seng outperformed regional rivals and gained 0.25 per cent to 18,571.7, bucking the market trend.

European stocks slump after witnessing worst weekly loss in 3 months

Nonetheless, on Friday, a basket of European shares fell across the board as recession frets mount, while growing likelihoods of a 100bps (basis percentage points) rate-hike from the US Fed had added to further holocaust.

Besides, over the past week, STOXX 600 shed 2.9 per cent, logging the regional pan-European index’s worst weekly percentage decline in three months. Apart from that, Monday’s downswing in European stock indices appeared to be stemming from an alarming bell from the World Bank issued on Thursday, while the largest lender of the world said that the global economy has been edging towards a recession as a number of Central Banks had adopted hawkish bets in order to tame a teetering inflation-surge.