European stock markets are trending negatively due to inflationary concerns triggered by oil prices and increases in bond interest rates.
The sharp rises seen in artificial intelligence and technology companies in global markets yesterday were replaced by selling pressure due to inflationary concerns triggered by rising oil prices and increases in bond interest rates.
Despite the optimism regarding technology and artificial intelligence companies, the effects of the US/Israel-Iran War point to vulnerabilities in the risk appetite in the markets.
Due to the lack of large technology companies in Europe, they cannot benefit from the technology rally and the rise in energy prices puts pressure on the growth and inflation outlook, causing the risk perception in the regional markets to continue.
While the political developments in England are also at the center of the markets, it is certain that the leadership race will begin in the country after the latest political developments. Finally, Health Minister Wes Streeting, who called on Prime Minister Keir Starmer to resign after suffering a major defeat in the local elections on May 7, announced that he is leaving his position in the government.
Although it was reported that Wes Streeting planned to run for the leadership of the Labor Party against Starmer, he did not make an official candidacy statement in his letter.
Due to the political uncertainties in the UK, the sterling/dollar parity decreased by 0.2 percent to 1.3370, while the country’s 10-year bond interest rose above 5 percent.
As of 10.40 in European markets, the Stoxx Europe 600 indicator index is at 612 points, with a 0.7 percent decrease, and the FTSE 100 index in England is at 10,308 points, with a 0.6 percent decrease.
In Germany, the DAX 40 index is at 24.3280 points, with a 0.7 percent loss, in Italy, the FTSE MIB 30 index is at 49,560 points, with a 0.9 percent loss, in France, the CAC 40 index is at 8,044 points, with a 0.5 percent decrease, and in Spain, the IBEX 35 index is at 17,689 points, with a 0.7 percent loss.
Analysts stated that the New York Fed manufacturing index, industrial production and capacity utilization rate will be followed in the USA today.
