European Stocks Fall Sharply, Energy Prices and Rising Yields Pressure Markets
European stocks closed sharply lower on Friday, as high energy prices and the return of tighter interest rate risks from major central banks weighed on sentiment. The EURO STOXX 50 index fell 1.8% to 5,825, while the pan-European STOXX 600 index weakened 1.6% to 606.
On a weekly basis, the pressure was also evident. The EURO STOXX 50 fell 1.5% for the week, while the STOXX 600 fell around 1% compared to the previous Friday. The decline occurred as investors assessed the risk of inflation persisting for longer if oil and gas prices remain high.
Eurozone government bond yields surged after a summit between US and Chinese officials ended without concrete steps to resolve the US-Iran conflict. This situation reinforced concerns that energy flows could again drive inflation, which in turn would maintain the narrative of high interest rates for longer.
Energy-intensive industrial stocks led the decline, with Siemens, Safran, Airbus, and Schneider falling between 2.6% and 5.5%. On the technology front, ASML and Infineon fell 4.5%, as global AI-focused stocks pared some of this week's gains. (gn)
Source: Newsmaker.id
