European Shares Retreat Amid Uncertainties Galore

European stocks were sharply lower on Wednesday, with weak German data, uncertainty ahead of Sunday’s first round presidential vote in France and hawkish comments from Fed Governor Lael Brainard weighing on sentiment.

Markets also await fresh sanctions to punish Moscow over alleged atrocities in Ukraine, something Ukraine President Volodymyr Zelensky described as “war crimes”.

The European Commission has already proposed new sanctions including banning Russian coal imports, raising worries about a new global supply challenge.

The pan European Stoxx 600 fell 1.1 percent to 458.01 after closing 0.2 percent higher on Tuesday.

The German DAX lost 1.4 percent, France’s CAC 40 index dropped 1.2 percent and the U.K.’s FTSE 100 was down half a percent.

Tech stocks led losses, with Infineon Technologies and ASM International falling 3-4 percent.

Volkswagen fell 2.4 percent on reports that the German automotive giant plans to axe many internal combustion engine models around the world by the end of the decade.

Danish wind turbine maker Vestas declined 1.3 percent after saying it has decided to withdraw completely from Russia over Moscow’s incursion into Ukraine.

British housebuilder Redrow lost 1.2 percent after saying it would make an additional provision of £164mln for cladding repairs.

Hyve Group rose about 1 percent. The events organizer is selling its Russian operations to Rise Expo Ltd. for up to £72 million.

Imperial Brands rallied 3 percent. The tobacco company said it remains on track to deliver full-year results in line with guidance issued on March 15.

In economic releases, German factory orders decreased 2.2 percent month-on-month in February, in contrast to the 2.3 percent increase in January, data from Destatis revealed.

German construction sector registered a sharp slowdown in activity growth in March as Ukraine war dampened demand, prices as well as supply, survey results from S&P Global showed.

The U.K. construction sector logged another robust growth, survey results published by S&P Global showed.

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