European stocks were broadly lower on Tuesday amid fears surrounding high inflation and interest-rate hikes.
Bond yields jumped after a senior Fed official called for several more rate hikes to combat ballooning inflation.
Eurozone inflation accelerated further in May on surging energy and food prices, flash data from Eurostat showed earlier today.
Inflation rose to a fresh record 8.1 percent in May from 7.4 percent in April. The rate was forecast to climb to 7.7 percent.
The data heightened concerns about the pace and scale of looming interest rate hikes, with traders now factoring in an outsized 50 basis point ECB rate hike in July.
The pan European Stoxx 600 dropped 0.4 percent to 444.83 after rising 0.6 percent on Monday.
The German DAX shed 0.7 percent and France’s CAC 40 index gave up 0.8 percent, while the U.K.’s FTSE 100 was up 0.2 percent, led by gains in the commodity sector.
Oil & gas firm BP Plc advanced 1.3 percent and Royal Dutch Shell added 1.5 percent, as Brent crude futures jumped above $123 a barrel to reach a two-month high after EU’s Russian oil ban.
Miners also traded higher, with Anglo American, Antofagasta and Glencore rising between half a percent and 1.6 percent.
Consumer goods giant Unilever soared 6.5 percent after it named billionaire activist investor Nelson Peltz to its board.
Dutch specialty chemicals maker DSM soared 7 percent after it announced plans to merge with Swiss peer Firmenich.
SAS slumped 7 percent after the Scandinavian airline announced plans to raise 9.5 billion Swedish crowns ($967 million) in new cash to improve its liquidity position.
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