Stock markets in Western Europe are falling during trading on Monday amid persistent concerns about high inflation and rising interest rates in the world’s leading economies.
The composite index of the largest companies in the region Stoxx Europe 600 fell by 1.26% by 11:41 a.m. to 382.97 points.
The German DAX fell 1.3%, the French CAC 40 fell 1.4%. The Italian FTSE MIB and the Spanish IBEX 35 are down 0.9% and 0.7% respectively.
The British stock index FTSE 100 is down 1% after the international rating agency S&P Global Ratings changed to “negative” from “stable” the outlook for the long-term ratings of the UK. The ratings themselves have been affirmed at ‘AA’.
As reported, the UK government at the end of September unveiled a tax cut plan in addition to its previously announced measures to provide widespread support to households to pay their electricity bills. As a result, according to S&P analysts, the country’s budget deficit will increase annually by an average of 2.6% of GDP until the end of 2025.
Investors also evaluate European statistics.
As it became known on Monday from the final data of S & P, the Purchasing Managers’ Index (PMI) in the manufacturing sector of the eurozone economy in September fell to 48.4 points from 49.6 points a month earlier. Preliminary data indicated a slightly more moderate decline – to 48.5 points.
In Germany, the manufacturing PMI fell to 47.8 from 49.1, in France it fell to 47.7 from 50.6, and in Italy the indicator rose to 48.3 from 48.
Shares of Credit Suisse fell 9% on Monday, despite statements from the head of the Swiss bank Ulrich Körner about the stability of the company’s finances. The bank’s management is expected to present a business reorganization plan at the end of October.
The price of shares of the French company Vinci is reduced by 0.8%, although earlier the company announced the receipt of two contracts for the construction of power transmission lines in Brazil for a total of 1.06 billion euros.
The capitalization of the British energy company Genel Energy is growing by 3.9%. The company announced the appointment of Paul Ware as its chief executive officer. Since June, he has held this position on a temporary basis.
ABB Ltd stock quotes. fell 7% after the Swedish-Swiss electrical equipment maker announced it had completed the spin-off of its Accelleron turbocharger business.
The decline leaders in the Stoxx 600 index, in addition to Credit Suisse, are Danske Bank (-8%) and tour operator Carnival Plc (-7.9%). Among the growth leaders are shares of salmon producer Bakkafrost (+8.3%), Swedish oil and gas company Orron Energy (+6.6%) and Norwegian Aker BP ASA (+5.5%).
