European stocks fall as Bank of England boost fades; Stoxx 600 down 1.7%

PUBLISHED: Thu, 29 Sep 2022 10:02:26 GMT
Share
Key Points

European stocks fell on Thursday as the initial reprieve after the Bank of England stepped in to calm the markets seemingly faded.

The pan-European Stoxx 600 fell 1.7% in early trade, with retail stocks dropping 4% to lead losses as all sectors and major bourses slid into negative territory.

 

Sterling has stooped to record lows against the U.S. dollar in recent days, and slid once again on Thursday morning, shedding 1% against the greenback to trade at around $1.078.

 

Global markets saw another volatile trading day on Wednesday, with stocks trading sharply lower as global markets sold off on economic concerns surrounding inflation and the growth outlook.

 

Market turmoil continued to hit the U.K., prompting the Bank of England to suspend the planned start of its gilt selling next week and begin temporarily buying long-dated bonds in order to calm the market chaos unleashed by the new government’s so-called “mini-budget.”

 

That move calmed markets in the U.S. yesterday, and that, in turn, pacified indices in Asia-Pacific overnight. U.S. stock futures inched lower in early premarket trading on Thursday, however.

 

Stocks on the move: Rational up 12%, Barratt Developments down 9%

 

Rational shares jumped more than 12% in early trade to lead the Stoxx 600 after the German combi steamer and oven manufacturer raised its sales revenue and profit forecast for 2022.

 

At the bottom of the European blue chip index, British property developer Barratt Developments fell more than 9%.

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.