European stock markets remain negative due to inflationary concerns arising from geopolitical risks.
Although a positive trend was evident in the New York stock market yesterday and the Asian markets today, as the predictions that the US Federal Reserve (Fed) will increase interest rates decreased, European markets differ negatively from these stock markets.
Increasing inflationary concerns arising from geopolitical risks are effective in the sales in European stock markets. According to the data announced yesterday, the Producer Price Index (PPI) in the Eurozone for July exceeded expectations by increasing by 1.6 percent monthly and 5.8 percent annually, and accelerated compared to June.
In the region, the Consumer Price Index (CPI) reached 3.3 percent in August, reaching its highest level in nearly three years, due to the rapid increase in energy prices on an annual basis.
On the other hand, German Chancellor Friedrich Merz is expected to meet with bank officials before the European Central Bank (ECB) interest rate decision meeting to be held next week.
Meanwhile, Huw Pill, Chief Economist of the Bank of England (BoE), stated that the BoE’s rapid increase in policy interest in the face of increasing inflation due to the US/Israel-Iran War may reduce the need for more aggressive interest rate increases in the future.
With these developments, as of 10.40 in the European markets, the Stoxx Europe 600 indicator index is at 648 points with a 0.1 percent decrease, and the FTSE 100 index in the UK is at 10,813 points with a 0.2 percent loss.
In Germany, the DAX 40 index is at 26,001 points, just below the previous close, in Italy, the FTSE MIB 30 index is at 51,894 points, 0.5 percent below the previous close, in France, the CAC 40 index is at 8,268 points, with a 0.2 percent loss, and in Spain, the IBEX 35 index is at 19,897 points, with a 0.5 percent decrease.
Analysts stated that an intense data agenda, especially employment data, will be followed in the USA today.
