Stock Europe closed lower in yesterday's trading. Thus, the composite indicator of the STOXX Europe 600 region lost 1%, although it had previously shown growth for five consecutive trading sessions. The German DAX indicator fell by 1.3%, the French CAC 40 – by 1.2%, the Italian FTSE MIB – by 1%, and the Spanish IBEX 35 - by 2%. The FTSE 100 indicator in the UK lost less than others, falling by only 0.2%. The main reasons for investors' concern remain global rising inflation, as well as a significant rise in the price of energy resources, and the second is the reason for the first. The reason for this is the unstable geopolitical situation and the excess of demand over supply. To combat accelerating inflation, the central banks of European countries are forced to resort to tougher monetary regulation measures. At the same time, such a sharp transition from a stimulating to a more stringent policy may lead to a slowdown in economic growth.
Investors are waiting for the results of the US president's visit to Europe to participate in the G7 and NATO summits, as well as a speech at a meeting of the European Council. As a result of the above-mentioned measures, a decision may be made to introduce a new package of sanctions against Russia. In the UK, consumer price growth last month was 6.2% year-on-year, compared with the January figure of 5.5%. This is a record figure for the last 30 years. According to experts' expectations, its growth should have been 5.9%. On a monthly basis, inflation increased by 0.8% compared to the January figure of -0.1%. Among the components of the STOXX 600 indicator, the largest decrease in the value of securities was shown by Auto1 Group SE (-12.1%), Zur Rose Group AG, (-9%), Verbund AG (-6.6%), as well as Delivery Hero SE (-6.3%).
Car manufacturer Stellantis has announced an upcoming major deal to create a joint venture with LG Energy Solution and build a battery plant in Canada with a total value of $4.1 billion. Also, an agreement has already been concluded with Termoli for the supply of batteries. However, even such good news could not positively affect the stock prices of Stellantis, which declined by 1.5%. Thanks to Leonardo's announcement of the planned sale of the Global Enterprise Solutions division in the amount of $450 million, the value of the company's securities increased by 2.7%. Despite the successful placement of bonds by L'Oreal with a total value of 3 billion euros, the stock prices fell by 1.7%. Due to the rapid increase in the cost of oil, the securities of BP and Shell companies rose by 4.5% and 4%.
