European Markets Drop 1%, German Production Rises 0.7%

Bridgette Randall
08 Jun, 2022
New York City

In European trading, market indexes declined after the World Bank and OECD lowered global growth outlook. 

The World Bank lowered its global growth estimate to 2.9% from the previous estimate of 4.1% in January.

Separately, the Organization for Economic Cooperation and Development also trimmed its outlook to 3% from the previous estimate of 4.5% in December. 

Both institutions cited rising food and energy prices, the ongoing war in Ukraine, and extended lockdown in China impacting global growth rates.  

Industrial production in Germany rose less than expected 0.7% in April from March but fell 2.2% from a year ago. 

March production decline was revised to 3.7% decline from the previous estimate of 3.9% fall, according to the data released by the statistics office Destatis.

The DAX index fell 0.7% to 14,455.67, CAC 40 index declined 0.9% to 6,442.12, and the FTSE 100 index dropped 0.6% to 7,555.26. 

The eurozone economic growth in the first quarter was revised higher to 0.6% from the previous quarter and 5.4% increase on an annual basis. 

Credit Suisse dropped 6.7% to 6.26 francs after the company said it is likely to report a loss in the second quarter on "challenging market conditions." 

The financial group is also looking to cut staff amid dwindling profitability and slowing activities. 

Pernod Ricard SA declined 2.8% to 176.75 euros and the spirit and wine maker said it is looking to digital channels and boost sales. 

Schneider Electric declined 1.7% to 127.62 euros after the French electric automation and energy management company said it has agreed to sell Eutotherm business unit to the U.S. based Watlow Electric Manufacturing Company. 

Financial terms of the deal were not disclosed.  

Inditex jumped 4.8% to 23.29 euros after the textile and apparel maker said first quarter profit increased 80% to 760 million euros and sales jumped 36% to 6.7 billion euros.