European Stocks Continue to Fall, Set for Worst Week in 2022
European stocks continued to fall and are set for their worst weekly decline in more than two years, as growth concerns continue to weigh on markets in the wake of U.S. tariffs.
The Stoxx Europe 600 Index fell 1% as of 8:20 a.m. in London, set for a weekly decline of 4.6%. Banks and mining stocks were the biggest laggards, while bond proxies such as utilities outperformed. Strategists see the rotation into defensive stocks as having room to run further, given the risk of a recession.
U.S. President Donald Trump said Thursday he is open to reducing his tariffs if other countries can offer something “phenomenal.” “Trump’s new tariffs on the EU are fueling global concerns,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg, adding that many systematic strategies are quite long European stocks, raising the possibility of further selling.
Traders will turn their attention to the monthly U.S. payrolls report and a speech by Federal Reserve Chairman Jerome Powell later in the day for signs of the U.S. economy’s resilience and that policymakers could cut interest rates further if needed.
U.S. job growth likely slowed to 140,000 last month, from 151,000 in February, according to economists surveyed by Bloomberg.
Among individual stock movers, Gerresheimer AG fell as much as 8.4% after Bloomberg News reported KKR & Co. had dropped out of a private equity consortium that was discussing a takeover of the German drug and cosmetics maker.
Source: Bloomberg
