Sunday, 16 June 2024

European stocks fall under pressure from automakers and inflation fears

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European stocks fell on Wednesday, May 22, affected by a wave of selling in shares of automakers after news of possible Chinese customs duties on imported cars, as well as British inflation data that came stronger than expected and cast a shadow on investor sentiment.

The index of European automakers fell 1.9% to the lowest level in more than three months, with Mercedes-Benz, BMW and Volkswagen shares declining by rates ranging between 1.1% and 2.3%.

An expert at a research institution specializing in automobiles affiliated with the Chinese government told the Chinese newspaper the Global Times that the country must raise customs duties on large gasoline-powered cars to 25%, at a time when China is facing a sharp increase in US customs duties on car imports, in addition to the possibility The European Union also imposes duties.

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The European Commission launched an investigation in October into whether fully electric cars manufactured in China receive subsidies that lead to price distortions that may justify the need to impose tariffs, and the European Union could impose temporary duties in July.

The European STOXX 600 index fell 0.3%, and the British Financial Times 100 index led losses in the region after data showed that inflation in Britain fell less than expected to 2.3% in April, which prompted traders to reduce their bets on the Bank of England to cut interest rates next month.

Marks & Spencer shares jumped by about 9% after the British retailer announced a 58% increase in its annual profits, after its business restructuring strategy led to strong growth in sales in the food and clothing sectors.

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