Extreme volatility prevails today (14/6) in the European stock markets, as the shares “turned” into negative territory – despite the upward start – a few minutes after the session began.
The pan-European Stoxx 600 index fell 0.10% to 515.52 points. Sector indexes traded mixed, as health care stocks rose 0.5%, while utilities declined 0.3%. The Stoxx is heading for one of its worst weeks of the year so far. Meanwhile, auto stocks took a hit after the EU announced higher tariffs on Chinese electric vehicle makers.
In Germany the DAX decreased 0.21% to 18,224.25 points, in Britain the FTSE 100 slightly lost 0.05% to 8,159.59 points, in France the CAC 40 decreased 0.88% to 7,640.39 units, in Spain the IBEX recorded 35 in 35% loss. 11,014.50 units and in Italy the FTSE MIB recorded a 0.92% decrease of 33,302 units.
In the US, two sets of inflation data – the consumer price index and the producer price index – showed a softer-than-expected picture, boosting stocks on Wall Street. At the same time, the Federal Reserve kept interest rates unchanged and revised its outlook for rate cuts to only one for 2024.
The start of the current week was dominated by the reaction of the markets to the outcome of the European elections, where far-right parties rose as predicted. But the shock came from French President Emmanuel Macron’s surprise decision to call early parliamentary elections, with investors fearing the possibility of a win for Marine Le Pen’s populist, far-right party.