On Tuesday, key European indices reported a fall on the final statistical data on the record level of inflation in Germany.
Thus, the aggregate indicator of the leading companies of the STOXX Europe 600 euroregion decreased by 0.54% to 455.79 points. The British FTSE 100 stock index lost 0.55%, falling to 7576.66 points, the German DAX sank 0.48% to 14124.95 points, and the French CAC 40 – by 0.28% to 6537.41 points.
The value of securities of leading German banks Deutsche Bank AG and Commerzbank AG decreased during the trading session by 9.2% and 8.4%, respectively. The reason for such a spectacular fall in shares was information about the sale of securities of two banks by an unknown investor worth 1.75 billion euros. The media suggested that the mysterious investor may be the American investment company Capital Group, because only it is an active institutional shareholder of Deutsche Bank AG and Commerzbank AG.
The capitalization of the Finnish telecommunications equipment manufacturer Nokia sank by 0.6% on Tuesday. Recently, the company's management announced its complete withdrawal from the Russian market and estimated the corresponding losses at 100 million euros.
The share price of the British multinational corporation Tesco Plc decreased by 1.6%, and the supermarket chain J Sainsbury Plc – by 2.1%.
The quotes of the securities of the financial conglomerate Societe Generale S.A. lost 1.5% on the news of the departure of the French bank from the Russian market. The main asset of the conglomerate, Rosbank, will be sold to the Russian investment group Interros in the near future. This transaction will complete Societe Generale's more than 15-year investment period in the Russian lender.
Market participants today analyzed the final statistical data on consumer prices in Germany. According to the report of the Federal Statistical Office of the country, in annual terms by the end of March, inflation in the state accelerated to 7.3% from February's 5.1%. The resulting indicator became a record in the entire history of observations of the Federal Statistical Office.
Experts call the high cost of food and petroleum products the main reason for the growing inflationary pressure in Germany.
On Tuesday, market participants expect data on the inflation rate in the United States. According to preliminary forecasts of analysts, according to the results of the past month, annual inflation in America soared to a record since 1981 of 8.4% from February's 7.9%.
The last meeting of the European Central Bank on monetary policy will be held on Thursday. Stock market participants expect new information on the future monetary policy against the background of record inflation growth in the eurozone.
The leaders of the EU states are not interested in tightening monetary policy due to the strong negative impact on the eurozone economy of the conflict in Ukraine. At the same time, members of the ECB Governing Council are actively insisting on an increase in the base interest rate this year.
