Europe open: Shares slump as investors fret over rate hikes, China Covid spread
European stocks slumped at the open on Monday as investors fretted about a slowdown in China and faster US interest rate hikes overshadowed pro-European French President Emmanuel Macron's election win.
The pan-European Stoxx 600 index was down 1.53%, having fallen 1.9% at one point. France's CAC 40 dropped 1.13% and Germany's DAX was down 0.77%.
“Friday’s sell off marked the end of a disappointing week for markets in Europe, as well as the US after Fed chair Jay Powell signalled that the Federal Reserve could well go much harder, and a lot quicker when the central bank pulls the trigger on the first of what might be several 50bps rate hikes, starting next month," said CMC Markets UK chief market analyst Michael Hewson.
In France and across the Continent there was relief at Macron’s victory, signalling a commitment to a united Europe as the French electorate’s rejection of hard-right policies.
Asian stocks slumped overnight as panic buying took hold in Beijing on fears of a hard Covid lockdown.
In equity news, shares in Russian gold miner Polymetal rose as the company reported a rise in first quarter revenues on higher metals prices.
Shares of Dutch health technology company Philips fell 10% as the firm reported a steep drop in first-quarter core profit.
Miners were weaker on the back of lower metals prices, with BHP, Glencore, Anglo American, Rio Tinto and Antofagasta all lower.