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On Monday European equity markets extended their early losses by lunchtime amid weakness in the technology, insurance and chemicals sectors. Ahead of a raft of inflation data from both sides of the Atlantic this week, concerns about the impact of rising interest on economic activity continued to unsettle investors.
On Tuesday the Nikkei closed 4.1 per cent lower bringing its total fall to about 20 per cent since this year’s intraday high on April 7. The benchmark average reached its lowest close since November. Analysts blamed a fresh overnight drop in the US stock market, caused by investor worries that higher inflation could prompt a rise in interest rates.
On Wednesday, after a mixed start, European equities markets struggled to mount a meaningful recovery by lunchtime. Sentiment remained fragile after recent sharp losses and investors were braced for further turbulence with key US inflation data due for release later in the session. Increased concern about inflationary pressures and the outlook for interest rates has been one of the main factors behind the increase in volatility across all asset classes recently. London equities were in volatile mood ahead of the release on key US inflation data.
On Thursday European equity markets extended their early gains, enjoying a recovery following an overnight rebound on Wall Street and gains in Asia. London stocks rebounded from a six-month low amid a fresh batch of bid speculation, including talk of an Emirates move for British Airways. Japanese stocks continued to gain ground amid fresh buying in technology and banking shares.
On Friday Japanese stocks closed sharply higher, extending their rebound from Tuesday’s record fall, lifted by better sentiment in the US. The Nikkei 225 closed up 2.8 per cent at 14,879.34, led by big jumps in the real estate and banking sectors. The Topix jumped 3.3 per cent to 1,534.71.
This article was compiled by Valletta Fund Management Limited, a member of the BOV Group. Valletta Fund Management, The Mall Offices, Level 6, The Mall, Floriana VLT 16. Freephone: 80072344. E-mail: infovfm@vfm.com.mt. Website: www.vfm.com.mt Valletta Fund Management Limited is licensed by the MFSA.
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