Europe: Stocks extend losses at open

EUROPEAN stock markets fell at the start of trading on Friday (July 1), extending this week’s slump on heightened recession concerns.

London’s benchmark FTSE 100 index lost 0.5 per cent to 7,132.93 points compared with the closing level on Thursday.

In the eurozone, Frankfurt’s DAX shed 0.9 per cent to 12,666.91 points and the Paris CAC 40 also slid 0.9 per cent to 5,868.78.

“The increasing consensus is that central banks, quite simply, misjudged inflation,” said Richard Hunter, head of markets at Interactive Investor.

“As such, they find themselves in catch-up mode and, as reiterated in the forum earlier this week, they are committed to control inflation even if the impacts become recessionary.”

Comments from top finance chiefs, including Federal Reserve boss Jerome Powell, suggest they are willing to endure the pain of economic contraction as long as they can rein in prices - which are rising at their fastest pace in decades. AFP