European Equities Edge Lower As Inflation Concerns Pressure Tech Stocks

European Equities Edge Lower As Inflation Concerns Pressure Tech Stocks

11 May 2021 02:47 PM
 

European equities edged lower today, tracking the yesterday’s tech-led selloff on Wall Street as investors increasingly turned their focus onto inflation data.

The DAX in Germany traded 1.9% lower, the CAC 40 in France dropped 1.8%, and the U.K.’s FTSE 100 fell 2.1%.

EUR/USD has been surging above 1.2150 after the German ZEW Economic Sentiment gauge beat expectations with 84.4 points. Earlier, worries about inflation bolstered the dollar.

European tech shares tumbled to their lowest level since late March, while miners handed back some of their strong gains in the previous session.

German inflation could climb above 3% as the economy recovers from the pandemic, according to ECB Executive Board member Isabel Schnabel in an interview today, but it won’t last and the European Central Bank will look beyond such volatility.