European Markets Declined After UK Inflation Accelerated and Oil Fell

Bridgette Randall
22 Jun, 2022
New York City

European markets accelerated declines after the U.K. inflation surged more than expected. 

Consumer price index rose 9.1% in May from 9.0% in April, according to the latest data from the Office for National Statistics.

Month to month price increase slowed to 0.7% from 2.5% in April, the report stated. 

The DAX index fell 2.0% to 13,027.62, the CAC-40 index declined 1.8% to 5,859.51, and the FTSE 100 index dropped 1.5% to 7,045.08.

Oil companies traded lower after crude oil prices declined 6% in the region. 

BP Plc fell 3.6%, Shell Plc decreased 3.6%, and Repsol S.A. declined 4.8%. 

BASF SE declined 5.6% to 43.30 euros after the chemical company said business in the second-half is likely to face considerable downturn. 

Credit Agricole SA declined 2.2% to 9.19 euros and the French-banking group released its strategic roadmap with a target of one million new retail customers and net income of 6 billion euros by 2025. 

Hugo Boss gained 0.7% to 48.70 euros and Frasers Group increased its stake in the fashion designer and retailer. 

The company has 3.425 million shares of common stock, representing 4.9% and 18.289 million shares of common stock via the sale of put options, representing 26.0% of Hugo Boss's total share capital, the company said in a press release today. 

Clariant AG declined 1.5% to 17.98 Swiss francs after the company said it plans to trim its business divisions from five to three. 

 

Asian Markets Turn Lower 

 

Markets in Asia closed lower following weak commodities prices and European markets. 

Crude oil prices in Asia declined 4% and natural gas prices dropped between 2% and 3% in the region on the worries of a global recession. 

The Nikkei index in Tokyo declined 0.4% to 26,149.55 and indexes in Hong Kong dropped 2.6% to 21,008.34 and in Shanghai fell 1.2% to 3,267.20. 

The Sensex index lost 709.54 or 1.4% to 51,822.53 and the Nifty 50 index dropped 225.50 or 1.44% to 15,413.30.