AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

LONDON: Eurozone shares hit session lows on Tuesday after data showed inflation rose to a record high in May, spurring bets of bigger interest rate hikes by the European Central Bank (ECB).

Inflation in the 19 countries sharing the euro accelerated to 8.1% in May from 7.4% in April, beating expectations for 7.7% as price growth continued to broaden, indicating that it is no longer just energy pulling up the headline figure.

The STOXX index of eurozone shares dropped 1.3% and the pan-European STOXX 600 index, flat before the reading, fell 0.7%.

“The eurozone’s high inflation reading has prompted stocks to reverse course, showing that investors are still very jumpy when it comes to the economic outlook and continued high inflation readings,” said Chris Beauchamp, chief market analyst at online trading platform IG.

The euro region’s banks, which typically welcome signs of rising interest rates, slid 1.6% as investors worried about the hit to the economy from surging prices.

“This is resulting in market expectations of perhaps ECB acting more quickly,” said Bert Colijn, senior economist, eurozone, at ING. However, he added that ING still expects the central bank to hike rates by 25 basis points in July and September.

Investors will closely watch for any change in the ECB’s stance after its meeting next week. The central bank has so far signalled that it will begin its interest rate hiking cycle in July, with the rate seen rising to 0% or above by September.

The STOXX 600 was set to end May down 1.6%, adding to sharp losses earlier this year on concerns over central bank tightening, fallout from the Ukraine conflict and China’s tough COVID-19 curbs.

Fuelling concerns about inflation, Brent crude hit $123 per barrel after Europe vowed to cut most Russian oil imports in the bloc’s toughest sanction on Moscow since the invasion of Ukraine three months ago.

Nordic stocks hit a record high on Tuesday, last up 1% and among the day’s rare outperformers along with London’s FTSE index.

A 9.4% jump in consumer goods giant Unilever, lifted British stocks, after it named activist investor Nelson Peltz to its board.

Dutch speciality chemicals maker DSM jumped 8.0% on plans to merge with Swiss peer Firmenich. DSM also announced the sale of its engineering materials subsidiary for 3.85 billion euros ($4.13 billion) to private equity firm Advent International and German chemicals company Lanxess Lanxess surged 11.2%.

Comments

Comments are closed.