European markets are trending lower at the open, as investors fail to sustain a lasting rebound in an uncertain and dismal economic backdrop.
The losses vary between -0.95% in Brussels and -1.2% in Paris. The Euro Stoxx 50 fell 1.15% and the Stoxx 600 lost 1.03%.
The question of economic growth will remain at the center of the concerns of investors, who are awaiting the Flash PMI indices for the countries of the euro zone and the United Kingdom in May in the morning.
Manufacturing activity and that of services are expected to increase, but at a slower pace than in April.
However, this indicator of economic activity “loses credibility” in the current context, judge Michael Hewson, of CMC Markets. If “looking at them, it would be tempting to think that all is well (…), it is obvious that economic growth is in difficulty in the whole of the European Union and in the United Kingdom”, notes t -he.
Inflation, especially that of raw materials, the war in Ukraine or the confinements in China have cut off the dynamic launched in 2021.
To slow the rise in prices, central banks have begun to tighten monetary policy, at the risk of further weakening economies. ECB President Christine Lagarde signaled on Monday that an exit from the era of negative rates could occur “by the end of the third quarter”, after several months of hesitation.
Ms. Lagarde is due to speak this Tuesday at the Davos forum.