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European markets lower as investors look ahead to U.S. inflation data


European markets were lower on Wednesday, with global growth concerns dominating sentiment and investors looking ahead to Thursday’s inflation data out of the U.S.

The pan-European Stoxx 600 was down 0.4% by mid-afternoon, having bounced either side of the flatline throughout the session. Retail dropped 2% to lead losses, while banks were down 1.5%.

On Tuesday, the International Monetary Fund cut its global growth forecast for next year to 2.7%. The prediction is 0.2 percentage points lower than its July forecast, and suggests that 2023 will feel like a recession for millions around the world.

European markets closed lower on Tuesday. All major bourses and the majority of sectors ended the trading session in the red. The region’s markets have suffered consecutive losing days as volatility continues to rattle sentiment.

The Bank of England intervened again to restore order to U.K. markets on Tuesday, with volatility in long-dated government bonds posing what it called a “material risk to U.K. financial stability.”

Uncertainty in the bond market persisted on Wednesday as the U.K.’s gilt market sell-off spilled over into continental Europe.

Stocks on the move: Chr. Hansen up 13%, Philips down 9%

Shares of Danish bioscience company Chr. Hansen jumped more than 13% by mid-afternoon, after a robust quarterly earnings report and promising outlook.

At the bottom of the Stoxx 600, Philips shares slumped more than 9% after the Dutch health tech firm issued a third-quarter profit warning and highlighted a 1.3 million euro ($1.26 billion) charge for its embattled sleep and respiratory care business.

– Elliot Smith

UK gilt market chaos rattles euro zone bonds

The turmoil in U.K. gilt markets spilled over into the euro zone on Wednesday, with euro zone government bond yields rising sharply after the Bank of England confirmed the end of its emergency bond-buying program on Friday.

The 10-year German bund yield was up 8 basis points to 2.3880% during afternoon trade in Europe, having earlier notched its highest point in more than a decade, while Italian 10-year BTP yields also jumped. Yields move inversely to prices.

U.K. 30-year gilt yields were up by around 16 basis points at 4.963% while the 10-year yield was up by more than 9 basis points at 4.533%.

Source : CNBC