European stocks fall as investors worry about global economy and potential policy responses

From Investing.com: 2025-01-13 03:10:45

European stock markets fell on Monday as investors worry about the global economy and potential policy responses. Major indices in Germany, France, and the UK all dropped by 0.3%. Concerns about US growth and the Federal Reserve’s cautious stance on interest rates are contributing to the negative sentiment in the markets.

The European Central Bank may ease policy further this year, aiming to strike a balance between avoiding a recession and curbing inflation. The ECB chief economist mentioned the possibility of four interest rate cuts this year to manage inflation. Rapid interest rate drops could lead to difficulties in controlling services inflation.

Investors are awaiting important inflation data this week, with the US CPI report and UK inflation numbers scheduled for Wednesday. The Fed’s concerns over inflationary pressures, along with recent selloffs in UK government bonds, are adding to market uncertainty. Economic data will play a crucial role in shaping investor sentiment.

GSK announced plans to acquire IDRx, a biopharmaceutical firm developing a treatment for a rare tumor, for up to $1.15 billion. Porsche saw a rise in stock despite a significant drop in China sales. US banks like JPMorgan, Wells Fargo, Citigroup, and Goldman Sachs will kick off fourth-quarter earnings reports this week, setting the tone for the financial sector.

Oil prices surged on Monday following US sanctions on Russian producers and vessels. WTI crude futures rose by 1.5% to $76.90 a barrel, while Brent crude climbed 1.6% to $81.06 a barrel. The sanctions on Russian oil companies and vessels could disrupt crude flows, leading to increased prices and shipping costs globally.



Read more at Investing.com: European stocks slip lower; central banks and inflation in focus By Investing.com