Shares of automakers and travel and leisure companies fell more than 2.5 percent on Wednesday, leading declines across key sectors of the European stock market, while a sharp rise in oil prices And gas is fueling fears that inflation will undermine economic growth.
The pan-European Stoxx 600 index ended the trading session down one percent, giving up most of the gains it recorded in Tuesday’s session.
Gas prices in the Netherlands and Britain hit record highs today, amid price increases across Europe.
A global energy crisis, labor shortages and other constraints in supply chains are affecting the global economic recovery while central banks are considering easing the massive pandemic-related stimulus. The Stoxx 600 is down about 5.5 percent since hitting a record high in August.
The pointer fell Dax German 1.5 percent after data showed that orders from factories in Germany fell more than expected in August due to a decline in demand from abroad, following two months of strong gains.
European bank shares fell 0.2 percent, but they were among the smallest losers, on expectations of higher interest rates, amid rising US and European government bond yields and oil prices recording their highest levels in several years.
The article European stocks fall on inflation fears amid sharp rise in energy prices was written in Al Borsa newspaper.