European Stock Market's concern about Growth and Inflation

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European Stock Market's concern about Growth and Inflation
13 Oct 2021
6 min read

News Synopsis

The International Monetary Fund (IMF) downgraded its outlook for the global economy in 2021 on Tuesday, but still predicts moderate growth in the medium term.

The Stoxx 600 index fell 0.1 percent in early trade, with basic resources falling 0.9 percent and technology firms rising 1%. European markets are off to a sluggish start as global trade continues turbulent due to concerns about inflation, economic growth, and rising oil prices. When the consumer price index is reported at 8:30 a.m. ET on Wednesday, economists estimate a 0.3 percent increase or a 5.3 percent annualized rate. Investors are also anticipating a flurry of profits from the United States, with big banks reporting third-quarter results this week.

In terms of individual stock price action in Europe, THG shares fell another 9% in early trade, following a 35 percent drop on Tuesday. The presentation left investors feeling let down. Following a great earnings report, Man Group, a British investment firm, soared 6.6 percent to the top of the Stoxx 600.

 

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