European stock market retreats after two weeks of recovery, as investors turn to bonds, amid concerns about risks to the global economic growth recovery.
European stock market slipped on Tuesday from two-week highs, reversing three straight sessions of gains, as investors turned to bonds, amid concerns about risks to a recovery in global economic growth.
All major stock exchanges in Europe closed with losses of about 1%. Britain’s FTSE 100 index posted its worst session in two weeks, with bond yields across the eurozone falling to at least three-week lows.
A survey published today showed that German investor sentiment fell more than expected in July, but remains at a very high level, while separate data indicated that orders for manufactured goods in Germany recorded in May the largest decline since the first wave of closings in 2020, With it being hit by weak demand from countries outside the eurozone.
The European Stoxx 600 index ended the trading session down 0.5%. The shares of auto and components manufacturers were the top losers, with their index falling by 2.9%.
Fears of supply chain bottlenecks have weighed on the index, since in early June it hit its highest level since 2015.
Shares of European oil and gas companies fell 1.8 percent, with oil prices falling after hitting their highest levels in several years. In the midst of the conflict within the “OPEC + .” groupAfter the UAE’s opposition to the proposed plan, which requires increasing oil production by 400,000 barrels per day every month.
Investors are awaiting the minutes of the Federal Reserve’s latest monetary policy meeting, which will be published on Wednesday, as they look for clues on whether the US central bank will scale back its massive stimulus programme.