European stocks are receding as global markets tremble due to inflation; Stoxx 600 down 1.5%

LONDON – European stocks retreated on Monday, following a negative mood in the world as investors continued to think about persistently high inflation.

The pan-European Stoxx 600 slipped 1.5% by late morning, with underlying resources falling 3.6% to lead to a loss as all sectors and major stock markets slipped into negative territory.

Aversion to risk in European markets comes after regional stocks retreated at the end of the last trading week due to a fall in US markets, and Wall Street last Thursday announced its worst day since 2020.

U.S. stock futures fell sharply in early pre-trading as traders struggled to find a foothold after a dramatic week of trading in the state.

Last week, the Nasdaq Composite lost 1.54%, while the S&P 500 and Dow fell 0.21% and 0.24%, respectively. It was the sixth consecutive week of losers for the Dow, and the fifth in a row for the other two major indexes.

Shares in Asia and the Pacific retreated on Monday as investors monitored market reactions to Chinese trade data that were better than expected.

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Investors are also keeping an eye on the war in Ukraine, fearing dozens have died after Russian shelling hit a school in the Luhansk region of eastern Ukraine. Lugansk is one of the two regions that make up Donbas, where Russian troops are now mostly concentrating their attacks.

Russia was also under scrutiny on Monday as it held its “Victory Day” – a holiday commemorating the defeat of the Soviet Union by Nazi Germany in World War II.

In his speech, President Vladimir Putin tried to justify his unprecedented invasion of Ukraine, claiming without evidence that the West was “preparing to invade our country, including Crimea,” according to a Reuters translation.

U.S. First Lady Jill Biden paid a surprise visit to Ukraine on Sunday. The U.S. and the Group of Seven countries have announced they will increase short-term financial support to Ukraine as the war with Russia approaches its three-month mark.

As for individual stock price movements in Europe, Danish hospital equipment maker Ambu fell more than 9% to the Stoxx 600 on Monday. There was no significant increase until late in the morning.

– CNBC’s Jesse Pound contributed to this market report.

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