European stock markets follow Wall Street down

Frankfurt, December 6 – Persistent concerns over interest rates also weighed on European stock markets on Tuesday. The Dax closed down 0.7% at 14,343.19 points. Its European counterpart EuroStoxx50 lost 0.5% to 3937 points. “It was another lackluster and negative trading session in Europe,” said Michael Hewson, chief strategist at online brokerage CMC Markets. After the decent price gains of the past few weeks, investors have little appetite to push prices higher in the near term. US stocks also fell again on concerns about a potentially longer and steeper phase of rising interest rates.

Investors are already turning their attention to the US Federal Reserve and European Central Bank (ECB) meetings next week. More recently, stronger-than-expected growth in the U.S. services sector and stronger-than-expected U.S. jobs data on Friday dampened speculation that the Federal Reserve could slow the pace and intensity of its rate hikes amid recent signs of slowing inflation. According to its chief economist Philip Lane, the ECB will also have to raise interest rates several times, even if inflation should have almost reached its peak.

OIL PRICES AND THE ENERGY SECTOR UNDER PRESSURE

Interest rates and economic fears also weighed on the oil market. The price of Brent North Sea crude oil fell 3% to $80.19 a barrel (159 liters). The light US variety WTI fell 2.8% to $74.81 a barrel. In contrast, the price cap of $60 a barrel for Russian oil transported by sea has so far had little impact on the market. “Price caps are likely to prove largely ineffective because there are too many ways around them and these are difficult to track and punish.

This is why the price of oil should initially benefit only a little,” said Konstantin Oldenburger, market analyst at online broker CMC Markets. Even the Russian threats initially had no effect. It is not known not yet what Russia can or will do to punish the companies or countries that participate in the sanctions.

After crude oil prices plummeted nearly 3.5% overnight, companies in the oil and gas sector were also under pressure. Industry giants Shell, BP and TotalEnergies lost between 0.4 and 1.8%.

FMC GRANTED BY A SOUDA CHANGE OF LEADERSHIP

Fresenius Medical Care (FMC) tops the list of losers in the German stock market index. After just over two months, CEO Carla Kriwet will be replaced by CFO Helen Giza as head of the dialysis group. FMC shares are down 3.7%, having lost more than half their value since April.

In London, the prospect of a major order from the United States sent shares of Rolls-RoyceRR.L soaring 3.2% to their highest level since July.

In the United States, Meta shares fell 5.6%. Parent Facebook is threatening to remove all posts on the platform if a controversial US media law is passed. Concerns about interest rates and the economy also pushed other growth stocks such as Amazon, Tesla, Netflix and Microsoft down 1.5-2.1%. Shares of industry group General Electric, on the other hand, rose 0.7% after a buy recommendation from investment bank Oppenheimer.

European stock markets follow Wall Street down

Source: Reuters

Symbolic photo: Image by StockSnap on Pixabay

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