Forex
European Stocks Fall Ahead of Christmas
- European Stocks Fall Ahead of Christmas
European stocks fell on Monday amid growing concern over interest rates and growth.
The Stoxx Europe 600 Index declined by 0.4 per cent, while HSBC stock dropped 1 per cent. Luxury-goods company LVMH fell 1.2 per cent.
The European Central Bank announced an end to its asset-buying program last month and the likelihood of rates increase in 2019 after years of zero interest rates.
Businesses in the Euro-area are worried rate hike will hurt growth, job creation and impact consumer spending amid slowing overseas demand.
Inflation rate rose to 1.9 per cent in the region last month, below 2 per cent expected by most analysts. However, rate increase is expected to sustain consumer prices around 2 percent as business are expected to pass the additional cost to consumers.