European Stocks Pull Back After Wall Street Sell-Off; Stoxx 600 Down 1%
May 6, 2022
The pan-European Stoxx 600 fell 1% in early trade, with retail stocks shedding 1.7% to lead losses as almost all sectors and major bourses slid into negative territory. Oil and gas stocks gained 0.8%.
The Dow Jones Industrial Average plunged more than 1,000 points and the Nasdaq Composite fell nearly 5% on Thursday, erasing Wednesday’s rally. Initial relief over the Federal Reserve’s ruling out of more aggressive hikes seemingly gave way once again to fears that a sharp hiking cycle in order to rein in red-hot inflation could harm economic growth.
U.S. stock futures pointed to further selling in early premarket trade on Friday ahead of the closely watched April jobs report. Meanwhile the dollar continues to strengthen amid economic anxiety, with the dollar index notching a fresh 20-year high on Friday morning.
Shares in Asia-Pacific also largely declined on Friday, with Hong Kong’s Hang Seng index leading regional losses as tech stocks sold off following the tech-heavy Nasdaq’s overnight drop stateside.
Earnings continue to affect individual share price movement in Europe, with Adidas and British Airways parent IAG among those reporting before the bell on Friday.
Shares of drug ingredients business EUROAPI climbed more than 5% in early trade on the Sanofi spin-off’s Paris stock market debut.
Spanish pharmaceutical company Grifols also added more than 5% after posting an improved first-quarter EBITDA margin.
At the bottom of the European blue chip index, Danish hospital equipment manufacturer Ambu slid more than 13% after cutting its guidance.
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