European markets open for closing, data, news and earnings
The British pound fell below $1.14 for the first time since 1985 as a combination of dollar strength and recession warnings weighed on the British currency.
Sterling fell as low as $1.135 at 8:50 am in London before rising slightly to $1.1378, hitting a 37-year low. It came after the release of figures showing a 1.6% drop in retail sales in August, which ING analysts said showed a “deteriorating consumption picture in the UK”.
Meanwhile, European markets were trading lower on Friday as growth concerns, expectations of rate hikes and continued volatility in the energy market weighed on stocks.
The pan-European Stoxx 600 was down 1%, with all sectors in the red.
The UK FTSE 100 was flat, the German DAX fell 1.7% and the French CAC 40 fell 1.8%.
Many sectors fell 2% or more, including basic resources, construction and industry. Auto stocks fell 2.5% despite data showing new car sales in the European Union rose for the first time in 13 months.
It comes after three days of losses for European shares, which particularly affected energy and technology stocks. However, banking stocks rose yesterday after Morgan Stanley analysts updated the sector.
The World Bank yesterday warned of a global recession in 2023, and said that raising the central bank may not be enough to bring down inflation.
Shares in the Asia-Pacific region fell on Friday, with the Shanghai Composite Index down 0.96%, despite China’s August industrial production and retail sales numbers that beat expectations.
Analysts at ANZ said that risk-sensitive stocks and markets will continue to struggle on inflation concerns and expectations of a Fed rate hike next week.
US stock futures also fell on Friday morning.