The leading European stock exchanges ended trading significantly lower on Thursday. With the most recent levies, the stock exchanges recorded one of the weakest first half-years in years. The Euro Stoxx 50 fell 1.69 percent to 3,454.86 points, slipping according to the US information service CNBC by almost 17 percent in total since the beginning of the year.
The DAX in Frankfurt closed at 12,783.77 points and down 1.69 percent. With a loss of almost 20 percent, the leading German index completed a sobering result for the first half of the year. The London Stock Exchange’s FTSE-100 fell 1.96 percent on the day to stand at 7,169.28.
According to the Helaba analysts, the heightened concerns about inflation and interest rates weighed noticeably on the stock markets and the previous day’s losses were extended. Other experts pointed to fears of a possible recession due to rising interest rates in the US and other countries.
“No investor wants to grab the famous falling knife at the moment and build up even larger positions before the summer,” said capital market strategist Jürgen Molnar from broker RoboMarktes, describing market activity. “Others, in turn, throw in the towel and secure the last profits that are left from the Corona rally.”
Auto stocks again posted significant losses. The sector had already come under pressure the day before. In addition to economic worries, the previous day the news had hit the sector that only climate-neutral new cars would be sold in the European Union from 2035. Renault lost another 2.6 percent after the taxes on the previous day. Volkswagen braked by 5.2 percent. Mercedes Benz fell by 4.1 percent.
After weak indications from Asia, technology stocks were not able to escape the downward pull. Investors took profits with the heavyweight ASML (down two percent). Despite significant losses this year, the share is still more than twice as high as the Corona low in 2020. A skeptical study by Exane BNP also affected SAP. The share of the software group lost 3.6 percent.