FX168 Financial newspaper (North America)European stock markets rose strongly in the first half of 2021, but fell slightly on Wednesday, the last trading day of the second quarter, as investors continued to worry about the COVID-19 epidemic and rising inflation.
The pan-European Stoxx 600 index closed down 3.53 points, or 0.77%, at 452.84. However, the index is still up more than 13% so far this year.
Spain's IBEX35 index closed down 96.10 points, or 1.08%, at 8819.00.
Italy's FTSE MIB index closed down 255.32 points, or 1.01%, at 25102.04.
The French CAC40 index closed down 59.60 points, or 0.91%, at 6507.83.
Germany's DAX30 index closed down 159.55 points, or 1.02%, at 15531.04.
The FTSE 100 index closed down 50.08 points, or 0.71%, at 7037.47.
The European Stoxx 50 index closed down 39.36 points, or 0.96%, at 4068.15.
European investors reacted to a series of economic data released on Wednesday. GDP in the UK fell 1.6 per cent in the first quarter from the previous quarter, slightly less than expected, while the total value of business investment fell 10.7 per cent in the first quarter as the UK endured a strict blockade. The Office for National Statistics also revealed that during this period, household savings in the UK have risen sharply, raising hopes for pent-up consumer spending as the economy reopens.
Andy Haldane, chief economist of the Bank of England, said he was "uneasy" about the Bank of England's nearly £1,000bn balance sheet. The data show that the economy is changing rapidly. UK inflation is expected to be close to 4 per cent (rather than 3 per cent) by the end of the year, posing the biggest challenge for policymakers since the sterling crash in 1992.So far, there is no evidence that consumer expectations for future price increases deviate from the central bank's 2% target. The rapid recovery after the lifting of epidemic prevention measures is rapidly changing the economy, and policy makers are increasingly likely to have to turn quickly to price control.
The eurozone consumer price index fell to 1.9 per cent in June from 2.0 per cent in May, in line with forecasts and the ECB's target of "close to but below 2 per cent". However, according to the ECB's latest forecast, it is expected to rise again to more than 2.5 per cent by the end of the year.
Global markets are looking forward to potentially significant US job market data later this week, hoping to judge whether the Fed will be forced to consider tightening monetary policy in advance. The Labor Department's key jobs report will be released on Friday.
While China's official manufacturing purchasing managers' index (PMI) slowed on Wednesday, Asia-Pacific stocks edged higher, while US stocks fluctuated near record highs.
In terms of corporate news, the European Commission (European Commission) announced on Tuesday that it had begun an in-depth study of British Airways parent IAG's plan to acquire Spanish European Airlines (Air Europa). IAG shares closed slightly higher.
Meanwhile, EssilorLuxottica, maker of Ray-Ban, is pushing ahead with plans to buy Dutch eyewear chain Grandvision. EssilorLuxottica rose slightly and Grandvision shares rose 14% on the news.
MorphoSys, a German biopharmaceutical company, fell 4.6 per cent to the bottom of the pan-European Stoxx 600 index.
WM Morrison shares rose 4.5% after a major shareholder said US private equity firm Clayton, Dubilier & Rice would raise its offer for the UK supermarket operator to about $9 billion.