European Markets Down as Inflation Concerns Weigh
European stocks were down on Tuesday as investors weighed concerns about rising inflation and the threat of a recession. The pan-European Stoxx 600 index was down 0.8% at midday, with all major sectors in the red. The decline in European stocks followed a similar sell-off on Wall Street on Monday, as investors worried that the Federal Reserve's aggressive interest rate hikes will lead to a sharp slowdown in economic growth. Inflation in the euro zone is at a record high of 8.6%, and there are growing concerns that it could push the region into a recession. The European Central Bank is expected to raise interest rates by 25 basis points at its next meeting in July, but some economists believe that it may need to do more to combat inflation. The weakness in European stocks is also being driven by concerns about the war in Ukraine. The conflict has disrupted energy supplies and pushed up prices, which is weighing on economic growth. https://globallearning.world.edu/2023/08/04/medic