European Stocks Weaken, ECB Stirs Market Nervousness
European stock markets weakened on Thursday (July 23rd) after a surge in global oil prices further dampened market sentiment. The STOXX 600 index fell 0.8% at the start of trading, retreating from the two-week high reached in the previous session.
The main pressure came from rising oil prices, which sparked renewed inflation concerns and pushed up European government bond yields. This pressure weighed on interest rate-sensitive stocks, with Germany's DAX and France's CAC 40 each falling more than 1%.
Investors also remained cautious ahead of the European Central Bank's interest rate decision. Markets expect the ECB to hold rates at 2.25%, but the focus is on Christine Lagarde's statement. If the ECB signals a hawkish stance and opens the door to a September rate hike, pressure on European stocks could continue.
On the corporate side, some stocks continued to provide support. Nestlé strengthened after second-quarter results beat expectations, while Nokia rose 6%, Dassault Aviation jumped 8%, and Thales rose 4%. However, STMicroelectronics plunged nearly 14% after disappointing financial results, adding to pressure on the European technology sector. (asd)
Source: Newsmaker.id
