Auto, retail and travel stocks fell more than 2.5% on Wednesday, leading to losses across all major sectors in Europe as rising oil and gas prices fueled fears that inflation would hurt economic growth.
The FTSEurofirst 300 index fell 0.99% to 1,747 points, while the European STOXX 600 lost 1.03% to 451 points, giving up almost all of the gains it made on Tuesday.
Wholesale gas prices in the Netherlands and the United Kingdom hit record levels on Tuesday, amid broader increases in energy prices.
“The eurozone is one of the biggest losers (with rising natural gas prices) in the developed world, with current account deterioration likely to approach 2% of GDP,” Deutsche Bank said in a statement.
“The recent moves could potentially bring Europe’s trade surplus to zero if it continues.”
The global energy crisis, labor shortages and other supply chain constraints have weighed on the global economic recovery at a time when major central banks are considering easing the massive pandemic-era stimulus. The STOXX 600 is already down about 5.5% since hitting a record high in August.
In London, the FTSE fell 1.15% to 6,995.87 points.
In Frankfurt, the DAX index fell 1.46% to 14973.33 points.
In Paris, the CAC 40 index fell 1.27% to 6,493.12 points.
In Milan, the Ftse/Mib index fell 1.35% to 25,605.73 points.
In Madrid, the Ibex-35 index fell 1.71% to 8,775.00 points.
In Lisbon, the PSI20 index fell 1.33% to 5,460.27 points.
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