May 24 2024: European stock markets fell on Friday, reflecting a broader global downturn driven by worries over persistent high interest rates and their impact on economic activity.
At 03:10 ET (07:10 GMT), Germany’s DAX index was down 0.9%, France’s CAC 40 fell 0.6%, and the UK’s FTSE 100 dropped 0.9%.
European equities continued their downward trend, influenced by negative sentiment from Asia and Wall Street, where fears of stubborn U.S. inflation and high interest rates hurt investor confidence. Japan’s Nikkei index dropped over 1%, and the U.S. Dow Jones Industrial Average had its worst session in over a year, falling more than 600 points.
Minutes from the Federal Reserve’s recent meeting suggested that U.S. interest rates could stay elevated longer than expected, adding to market anxieties. Although the European Central Bank is anticipated to cut rates in June, the Bank of England faces challenges after UK inflation came in higher than expected earlier this week.
British retail sales fell by 2.3% in April, more than anticipated, as bad weather deterred shoppers, particularly affecting clothing and sports retailers.
In corporate news, Abrdn’s (LON:ABDN) CEO Stephen Bird will step down after four years, with CFO Jason Windsor stepping in as interim CEO. Despite this, Abrdn’s stock rose 1%.
In the commodities market, crude prices steadied on Friday but remained set for substantial weekly losses due to concerns over U.S. economic activity amidst high inflation and interest rates. U.S. crude futures (WTI) were down 0.1% at $76.79 per barrel, and Brent crude futures were down 0.1% at $81.30 per barrel. Both benchmarks faced weekly losses exceeding 3%, with Brent at a two-month low and WTI at a three-month low.
The upcoming OPEC+ meeting in June is expected to discuss extending voluntary oil output cuts totaling 2.2 million barrels per day. Gold futures rose 0.2% to $2,341.10 per ounce, while the EUR/USD traded 0.1% higher at 1.0818.
