On Friday, a basket of European bourses had winded down the session sharply lower with energy and material stocks having been tanked over 6 per cent amid fears of a demand-crunch, as a recession in Europe seems inevitable following release of a weak business activity data later last week.
The regional pan-European STOXX 600 dropped over 4.4 per cent in the week. Besides, the dismal business activities data also had added to worries that the ECB (European Central Bank) might adopt an ultra-hawkish stance similar to US Fed in order to tame a teetering inflation-surge.
Nonetheless, an adoption of an aggressive rate-hike policy at a time, when a raft of small- and intermediate-scale businesses were scuffling to grapple with a shattered supply chain alongside a demand-crunch, would only accelerate a recession in Europe, suggested analysts following release of latest set of euro zone data.
As a survey had revealed later this week that business activities in the Eurozone had spiralled downwards this month and the EU might have already been in a recession, Germany’s main index bottomed to its lowest level since November 2020.
European stocks pummel as recession fear sparks
Citing statistics, on Friday’s European market wind-down, London’s FTSE 100 shrugged off 1.97 per cent to 7,018.60 and French CAC 40 curbed out 2.28 per cent to 5,783.41, while Frankfurt’s DAX dwindled 1.97 per cent to 12,284.19.
Elsewhere in Europe, Italy’s benchmark FTSE MIB muzzled as much as 3.36 per cent to 21,066.55, while Madrid’s IBEX 35 shed 2.46 per cent to 7,583.50. Over the week, London’s blue-chip FTSE 100 faltered 3.01 per cent, French CAC 40 fell 4.84 per cent and Frankfurt’s DAX dwindled 3.59 per cent, while Italy’s FTSE MIB muddled 4.42 per cent and Madrid’s IBEX 35 lost as much as 5.02 per cent.