FX.co ★ US stocks extend losses after confident rise early this week

On Thursday, the main European stock indices continue to drop. However, at the beginning of the trading session, they climbed higher but later resumed the downward movement. Market participants are deeply concerned about the prospects of a slowdown in the global economy. The weakening of inflation fears amid a drawdown in oil prices limits the upward movement in European stock exchanges.

At the time of writing this article, the STOXX Europe 600 lost 0.12%, dropping to 459.63.

The shares of Swedish IT company Sinch AB (-10.7%), Polish logistics company InPost SA (-4%), as well as Telecom Italia SpA (-3.2%) incurred the biggest losses.

The largest gainers were the stocks of Russian gold mining company - Polymetal International (+8.1%) and Orpea SA (+4.8%).

On Thursday, the DAX index is down by 0.04%. The FTSE MIB shed 0.2%, the IBEX 35 decreased by 0.15%, the FTSE 100 slid down by 0.04%, and the CAC 40 dropped by 0.16%.

Despite a constant decrease in recent days, the leading European indices will end March on a positive note. The Stoxx 600 grew by 4%, while the DAX rose by 5%.

H&M shares nosedived by 8.5%. Despite the company's upbeat earnings report in the first quarter of the current financial year, the net profit was lower than analysts' forecasts.

The capitalization of UK investment company Brewin Dolphin Holdings instantly soared by more than 60% on the news that the Royal Bank of Canada agreed to buy it for $ 2.1 billion.

During Wednesday's trading session, the major EU indices closed in the red after a spectacular rise a day earlier. The day before, market participants assessed the prospects of a recovery in the global economy amid the geopolitical woes in Eastern Europe.

As a result, the STOXX Europe 600 index sank by 0.41% to 460.19.

The shares of UK advertising company S4 Capital Plc logged the steepest drop among the companies included in the index. Its stock collapsed by 36%. S4 Capital Plc announced another delay in the publication of the earnings report due to problems with the PricewaterhouseCoopers audit.

The CAC 40 index lost 0.74% on Wednesday, the DAX shed 1.45%, the FTSE MIB decreased by 0.03%, and the IBEX 35 slid down by 0.74%. Only the FTSE 100 index grew by 0.55%.

Yesterday, the stocks of companies doing business in Russia also incurred losses. French conglomerates Societe Generale and BNP Paribas sank by 2.5% and 2.3%, respectively. Renault shares fell by 4%.

The shares of Swiss financial holding UBS Group AG dropped by 1.5%. Even the announcement of the launch of a new share-buyback program of up to $6 billion the day before did not boost the company's shares. The program is scheduled to begin today. It will stay in effect for two years,

The main reason for a sharp decline in the DAX index was the outlook for Germany's economy. Earlier, analysts lowered its GDP outlook for the current year amid the escalation of the conflict between Ukraine and Russia. Thus, the growth of gross domestic product may total only 1.8%. In November 2021, economists predicted an increase in GDP by 4.6% in 2022.

As for macroeconomic figures for Germany, in March, the inflation rate soared to 7.3% in annual terms from 5.1% in February. According to the Federal Statistical Office, the indicator hit an all-time high.

Inflation in Spain surged to 9.8% in March from 7.6% in February, notching the highest level since 1985. At the same time, experts predicted an increase of only 8%.

According to preliminary data, in March, the consumer confidence index in Sweden plunged to 73.5 from February 89, reaching a 30-year low.

Another bearish factor for the DAX index was a dazzling rise in oil prices on Wednesday. Crude oil increased by 3%, while gas prices in Europe jumped by 9%.

The FTSE 100 was up amid a rally in the commodity market. As a result, the oil and gas industries in the eurozone expanded by 3.3% and 2.4%, respectively. The capitalization of French energy giant TotalEnergies, UK Petroleum, and Glencore rose by 2.5%, 3.1%, and 4.2%, respectively.

Geopolitical tensions, which began more than a month ago, have adversely affected stock markets worldwide. In addition, analysts are confident that the Russia-Ukraine conflict will slow down the expansion of the global economy as well as trigger a surge in inflation and shortages of raw materials in some countries.