“No one buys a new car when commodity prices are through the roof”said Michael Hewson, chief market analyst at CMC Markets.
The pan-European STOXX 600 index fell 3.6%. In the week it accumulated a loss of 7%, its worst decline since the liquidation generated by the coronavirus pandemic in March 2020.
The German DAX index, heavily weighted by the automotive sector, closed down 4.4%, to a low of more than a yearand auto firms plunged 5.6%, one of the worst results of the week among European sectors.
Among other regional indices, France’s CAC 40 fell 5%, Italy’s FTSE MIB sank 6.2% and Britain’s FTSE 100 fell 3.5%.
What happened this Friday was that Russian forces seized the largest nuclear power plant in Europe after the fire in a complex building in Ukraine.
In turn, the prices of gold and bonds, which are a refuge, climbed as investors’ nerves were shot, and A gauge of euro zone stock volatility hit 45 points for the first time since June 2020.
For its part, Eurozone banks plunged 7.9% as government bond yields felland rising commodity prices triggered by Western sanctions against Russia raised concerns about runaway inflation and slowing economic growth.
Source: Ambito
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