AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)

PARIS: European shares sank to their lowest level in six weeks on Friday, dragged down by financials and healthcare as concern over interest rates staying higher for longer globally and China’s dwindling growth prospects hit investor sentiment.

The pan-European STOXX 600 closed 0.6% lower, falling for the fourth straight session and sinking to its lowest since July 7.

Surging bond yields have pressured equities this week, with the STOXX 600 notching a weekly fall of more than 2%. “Equity market valuations are coming under some pressure with bond yields hitting new multi-year highs,” said Kiran Ganesh, global head of investment communications in the UBS Chief Investment Office.

Further muddying China’s economic outlook, embattled developer China Evergrande Group filed for US bankruptcy protection, while a package of measures by China’s securities regulator to revive a sinking stock market failed to boost investor confidence in light of a sluggish economy.

China-exposed luxury heavyweights LVMH, Kering and Hermes fell by 0.7% to 1.1% on heightened concerns over dwindling demand from the world’s second-largest economy.

Europe’s largest bank HSBC and UK-based Prudential , which also do business in China, fell 1.4% and 3.2% respectively, and Barclays trimmed its price target on the latter.

Weighing on the healthcare sector was an over 1% decline in Novo Nordisk, AstraZeneca and Roche Holding each.

European miners, who are also affected by developments in China, lost 1.5%.

Meanwhile, data showed euro zone inflation slowed further and even underlying price pressures appeared to have peaked, easing pressure on the European Central Bank to keep raising rates after its fastest rate-hike cycle on record.

“Maybe it’s too early to declare victory over inflation… what markets are telling is that the economy is proving to be resilient and it’s unlikely that central banks are going to have to cut rates next year because the economy should still be in decent shape,” Ganesh said.

UK’s blue-chip FTSE 100 fell 0.7% after data showed British retail sales slumped more sharply than expected in July. Dutch payments processor Adyen NV hit a more than three-year low, down 2.9%, adding to Thursday’s record loss after weak earnings raised concerns about its valuations and a price war grew.

Comments

Comments are closed.