European stocks fall again with cenbank meetings in the spotlight | Money


The pan-European STOXX 600 index fell 0.8%, hitting session lows after data showed U.S. producer prices were higher than expected, which saw Wall Street indices open in decline a day before the Federal Reserve’s monetary policy decision. – Reuters photo

LONDON, December 15 – European stocks reversed their initial gains to end lower for a fifth straight session yesterday as tech stocks weighed in, while the healthcare sector fell despite a 12.6% rise in Vifor Pharma .

The pan-European STOXX 600 index fell 0.8%, hitting session lows after data showed U.S. producer prices were higher than expected, which saw Wall Street indices open in decline a day before the Federal Reserve’s monetary policy decision.

The Fed is expected to signal a faster decline in asset purchases, while the European Central Bank and the Bank of England will meet tomorrow to determine the direction of their monetary policies through 2022.

The International Monetary Fund yesterday urged the Bank of England to avoid an “inaction bias” when it comes to raising interest rates despite forecasting higher inflation.

“Equity markets will remain nervous as there are tensions between Omicron … and a busy schedule for central banks … as we are in between two seasons of earnings,” said Nick Nelson, head of equity strategy Europeans at UBS.

“But we’re not talking about the same restrictions we had in the first quarter of 2021 or 2020 anymore, so in the short term restrictions across Europe will only be a slight drag on growth.”

Germany’s Ifo Institute has slashed the country’s GDP growth forecast for 2022, saying a fourth wave of Covid-19 and persistent bottlenecks are slowing Europe’s largest economy.

At least one person has died in Britain after contracting the Omicron variant, the first publicly confirmed death worldwide from the rapidly spreading strain. But Britain is expected to remove the 11 countries from its Covid-19 travel red list from Wednesday.

Tech stocks lost 2.1%, following their US peers, while the healthcare index slipped 1.2%.

Vifor extended its earnings from Monday after agreeing to be acquired by Australian biopharmaceutical giant CSL for $ 11.7 billion (RM 49.5 billion).

Miners also limited losses, which followed higher copper and iron ore prices, as rising bond yields and tighter monetary policy on the horizon gave banks a boost.

UniCredit strengthened 4.6% after HSBC raised the Italian lender’s target price, while ArcelorMittal rose 8.1% after the world’s largest steelmaker announced plans to buy back part of its debt.

Rentokil plunged 12.3% on its $ 6.7 billion plan to buy US rival Terminix, while AutoStore Holdings fell 13.4% after losing a patent infringement lawsuit against the British online supermarket group Ocado Group.

BT slipped 4.3% after Franco-Israeli entrepreneur Patrick Drahi increased its stake to 18%, prompting Britain to warn it would intervene if necessary to protect the telecommunications group that is building the network. critical optical fiber of the country. – Reuters

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