The major European indicators showed declines at the close of yesterday's trading. Thus, the composite STOXX Europe 600 lost 0.35%. Indicators of European stock exchanges declined by about the same amount: the German DAX index and the UK's FTSE 100 index dropped by 0.48% and 0.55% respectively, the French CAC 40 index decreased by 0.28%, the Italian FTSE MIB fell by 0.33%, and the Spanish IBEX 35 decreased only by 0.1%.
Germany reported another jump in inflation. Last month, prices grew by 7.3% compared to February's reading at 5.1%. This is the highest inflation rate ever recorded.
The next ECB meeting is approaching and investors are waiting for the decisions to be made. According to experts' forecasts, the central bank may keep the interest rate at 0. However, there is a possibility that it may be increased, as it has already been done in the US
US inflation showed another increase to 8.5% in March from February's 7.9%. At the same time, according to forecasts, inflation was expected to jump to 8.4%. A higher inflation rate is an important consideration when the regulator makes decisions regarding monetary policy tightening.
Among the companies included in the STOXX Europe 600 index, Evotec SE dropped by 6.8%, TUI AG declined by 5.7%, Rolls-Royce Holdings PLC lost 5.5%, and CD Projekt S.A. decreased by 4%.
At the same time, stocks of other companies on the index increased. Diploma PLC added 11.5%, Nokian Renkaat Oyj jumped by 8.5%, TeamViewer AG increased by 5.1%, and Auto1 Group SE gained 4.9%.
Following the news that an unknown investor sold the securities of German banks Deutsche Bank AG and Commerzbank AG at a below-market price for a total of €1.75 billion, the share prices of both companies fell by 9.4% and 8.5% respectively. It is assumed that the sale of securities was carried out by Capital Group.
Having announced its withdrawal from the Russian market due to the Russian-Ukrainian conflict, Nokia will lose about €100 million, which is likely to be reflected already in the report for the first quarter of this year. This led to a 1.4% drop in the value of the company's securities.
The French company Societe Generale also announced its withdrawal from the Russian market and the sale of Rosbank and the insurance business to Interros. As a result of this announcement, Societe Generale's share prices fell by 1.9%.
Retail sales in the UK fell last month due to declining consumer confidence and rising prices, which led to a plunge in the value of securities of UK retailers. Thus, the share price of Tesco Plc decreased by 1.7%, J Sainsbury Plc dropped by 2.6%, and Ocado Group Plc fell by 4.3%. At the same time, stocks of LVMH Moet Hennessy Louis Vuitton SE rose by 2%.
