European stocks fall as global markets are shaken by inflation; Stoxx 600 down 1.5%
LONDON – European shares fell on Monday, tracking negative sentiment globally as investors continued to think about persistently high inflation.
The European Stoxx 600 Index is down 1.5% late in the morning, with core resources shedding 3.6% to lead losses as all major sectors and stock exchanges slipped into negative territory.
Risk aversion in European markets comes after regional stocks tumbled at the end of last trading week on the back of the crash in US markets, with Wall Street posting its worst day since 2020 last Thursday.
US stock futures fell sharply in early pre-market trading as traders tried to find a foothold after an exciting week of trading in the US.
Last week, the Nasdaq Composite lost 1.54%, while the S&P 500 and Dow were down 0.21% and 0.24%, respectively. This was the sixth consecutive week of losses for the Dow and the fifth in a row for the other two major indices.
Stocks in the Asia-Pacific region fell on Monday as investors awaited the market’s reaction to better-than-expected Chinese trade data.
Investors are also watching the war in Ukraine, where dozens of people are feared dead after a school in the Luhansk region in eastern Ukraine was bombed by Russia. Luhansk is one of the two regions that make up the Donbass, where Russian forces are now largely concentrating their attacks.
Russia was also in the spotlight on Monday, holding “Victory Day” – a holiday to commemorate the Soviet Union’s defeat of Nazi Germany in World War II.
In his speech, President Vladimir Putin tried to justify his unprecedented invasion of Ukraine by claiming without evidence that the West was “preparing to invade our lands, including Crimea,” according to a Reuters translation.
US First Lady Jill Biden made a surprise visit to Ukraine on Sunday. The United States and the Group of Seven have announced that they will increase short-term financial support to Ukraine as the war with Russia approaches the three-month threshold.
In terms of individual stock price action in Europe, Danish hospital equipment stock Ambu fell more than 9% on Monday to the bottom of the Stoxx 600. There were no significant gains late in the morning.
CNBC’s Jesse Pound contributed to this market report.