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European Markets Saw Greater Decline than Wall Street as Stalled US Debt Talks Hit Risk Appetite

Picture Source: Internet

European stock markets closed lower on Tuesday posting heavier losses than US equity futures over investors’ nervousness about the lack of a deal after the latest meeting between House Speaker Kevin McCarthy and President Joe Biden seemed to be greater outside the US.

The pan-European STOXX 600 index closed 0.6% lower with sectors mixed as trading ended. Household goods decreased 2.5%, while industrials lost 1.3% and oil and gas stocks rose 0.9%.

The FTSE 100 in the United Kingdom was down 0.1% to 7,762.95, while the DAX in Germany fell 0.4% to 16,152.86 and the CAC 40 in France fell 1.3% to 7,378.71.

Luxury giants’ losses weighed on European stocks. The STOXX Europe Luxury 10 fell 4.3% in a single day, the most since mid-December. LVMH sank 5%, while Hermes and Kering slid 6.5% and 3%, respectively.

The consumer price index for April, as well as retail and producer price inflation rates, will be announced. Analysts anticipate a large decline in CPI to 8.2%, down from 10.1% in March.

The Eurozone Composite Purchasing Managers’ Index for May showed solid growth that continued to be driven by services, with manufacturing hit by weak demand and a fall in selling prices.

The euro gained 0.15% against the dollar and was valued at $1.0785.

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