Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European shares pop two weeks of gains as growth fears weigh

Stock Markets Aug 05, 2022 12:01PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 4, 2022. REUTERS/Staff

By Bansari Mayur Kamdar and Anisha Sircar

(Reuters) -European shares fell on Friday after a stronger-than-expected U.S. jobs report ramped up bets of another 75 basis point rate hike by the Federal Reserve next month, while fears of a darkening growth outlook pushed shares towards weekly losses.

The pan-European STOXX 600 was down 0.8%, extending losses from earlier in the day after U.S. nonfarm payrolls were shown to increase by 528,000 jobs last month, the largest gain since February.

The benchmark has lost 0.6% this week, snapping two weeks in positive territory, on worries over dour economic data from the region, rising geopolitical tensions and fears that higher interest rates could tip the economy into a recession.

"The data published this week add to the evidence that a recession is just around the corner," said Jack Allen-Reynolds, senior Europe economist at Capital Economics.

Figures this week also showed euro zone retail sales plunged in June and factory gate prices continued to rise, while euro zone business activity contracted in July for the first time since early last year.

"Forward-looking indicators suggest that worse is to come... If we are right, the European Central Bank will raise interest rates more aggressively than is currently priced into the market, and the economy will underperform consensus forecasts."

Euro zone government bond yields jumped, with Germany's 10-year bond yield last up 9 bps at 0.89%. [GVD/EUR]

Company results were mixed on Friday, with Deutsche Post (OTC:DPSGY) up 4.6% after posting double-digit growth in revenue and earnings.

London Stock Exchange Group (LON:LSEG) gained 1.6% on saying costs and savings targets for integrating its $27 billion acquisition of data company Refinitiv remain unchanged and it was launching a 750 million pound ($910.65 million) share buyback.

Allianz (ETR:ALVG) fell 1.6%. The insurer spent around 140 million euros ($143.11 million) on restructuring to wind down a U.S. funds unit at the centre of a multi-billion fraud, and posted a worse-than-expected 23% fall in quarterly profit.

Ground staff of Germany's Lufthansa and management reached a pay deal after negotiations, averting further walkouts during the busy summer travel season. Shares of the carrier rose 4.0%.

Miners were the biggest gainers, jumping 1.1%, tracking a rise in prices of copper and other base metals as investors focused on low inventories and threats to supply. [MET/L]

Oil stocks reversed early declines to inch 0.6% higher on the back of a rebound in crude prices.

German industrial production posted an unexpected but modest increase in June, official data showed, despite supply chain problems weighing on manufacturing.

European shares pop two weeks of gains as growth fears weigh
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email