Tranzactioneaza ishares Stoxx Europe 600 Travel & Leisure Ucits ETF (de) (DE.EXV9) - 22.77 EUR (%) Tranzactioneaza

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Inflation shock drives European stocks to 3-month lows

European stocks tumbled to three-month lows on Monday, dragged down by technology and travel stocks, as a sharp rise in U.S. inflation raised concerns about aggressive interest rate hikes by the Federal Reserve. The pan-European STOXX 600 index fell 1.9% to its lowest since March 8. High-growth technology stocks (DE.EXV3) dropped 3.3% to lead the morning losses as government bond yields hit multi-year highs on bets of a faster tightening of monetary policy, with economy-linked sectors such as travel &amp leisure (DE.EXV9) and automakers (DE.EXV5) also shedding more than 3%. The mood turned dark following a sharp Wall Street sell-off on Friday after data showed U.S. consumer prices surged 8.6% in May, its biggest gain since 1981, raising worries about a bigger 75-basis-point rate hike at the Fed meeting this week.

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European Stocks Rally as Early Pandemic Valuations Tempt Buyers

European equities (DE.EXS1) climbed as bargain hunters scooped up shares that haven’t been this cheap since the start of the pandemic. The Stoxx Europe 600 Index rose 1.4% by 12:01 p.m. in London, tracking a rise in US stock futures (DE.SXR8) as enticing valuations outweighed concerns about higher interest rates and soaring inflation. Travel and leisure (DE.EXV9), technology (DE.EXV3) and bank stocks (DE.EXV1) were among those leading the gains, while real estate (DE.EXI5) and telecommunication shares (DE.EXV2) underperformed. The region’s equities have slumped this year as traders fretted over the impact that inflation and tighter monetary policy will have on the economy as well as the implications of the war in Ukraine. The Stoxx 600 has dropped 13% from its January record high.

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