European stocks closed lower on Friday, down more than 1 percent this week as investors weighed risks from tighter monetary policies after the European Central Bank (ECB) signaled a slowdown of COVID-19-era bond purchases.
The pan-European STOXX 600 index fell 0.26 percent to 466.34, and dropped for four of five sessions this week to post a weekly decline of 1.19 percent, as worries persisted about a slowing global economic recovery.
Defensive sectors such as healthcare and real estate notched the biggest weekly drops, as investors positioned for a possible increase in economic growth.
News of a call between Chinese President Xi Jinping (習近平) and US President Joe Biden offered some relief to battered Asian stocks, particularly tech companies that have come under heightened regulatory scrutiny in Beijing.
Tech stocks in Europe rose 0.7 percent, while luxury stocks received a boost as France’s LVMH Moet Hennessy Louis Vuitton SE rose 0.8 percent after HSBC Holdings PLC recommended buying the stock.
China-exposed miners were the biggest gainers on the day, up 1.1 percent.
European stocks found support after the ECB said it was not about to close the money taps, despite projecting higher growth and inflation for the eurozone.
“The outcome of the meeting is likely to be supportive in the short term, but even if ECB President Christine Lagarde was cautious in highlighting that the decision was a just a recalibration, a ‘real’ tapering is probably coming next year, provided that economic conditions remain good enough,” UniCredit SpA analysts said.
European shares have hovered below their record highs in the middle of last month on the back of good earnings and recovery prospects, but major money houses are skeptical of further gains, particularly in US stock markets that are home to high-growth companies.
In London, the FTSE 100 ended higher, but posted its worst weekly performance since the middle of last month as data showed the pace of domestic economic recovery stalled in July due to a surge in COVID-19 cases and supply chain disruptions.
The blue-chip index ended 0.07 percent up at 7,029.20, down 1.53 percent from a week earlier, with miners leading the gains.
Economic output rose just 0.1 percent in July, the British Office for National Statistics said, the smallest monthly increase since January when the uK went into a new national lockdown.
“Isolation rules have been relaxed... The vaccination rollout has continued apace and Delta appears to have been kept at bay, at least for now,” AJ Bell financial analyst Danni Hewson said.
“August’s figures will be colored by the bright palate of summer, but September seems to have brought a new term full of old normals,” Hewson added.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
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Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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