European Stocks Fall Ahead of Christmas

Mario DraghiMario Draghi, president of the European Central Bank (ECB), right, speaks with Jens Weidmann, president of the Deutsche Bundesbank Photographer: Martin Leissl
  • 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.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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