European Stocks Decline as Stagflation Fears Rise Ahead of ECB
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European stocks fell on Wednesday as stagflation fears hit sentiment, after reports indicated that the region’s economy was further sinking into a downturn while inflation was set to stay persistently high.
The pan-European Stoxx 600 Index fell 0.3% by the close in London, with retail and industrial-goods sectors trading lower. Concerns were underlined by the European Central Bank’s new economic estimates, which will show an inflation forecast for 2024 above 3% — strengthening the case for further tightening.