European stock markets end Monday in red as inflation worries rise

ANKARA (AA) – European stock markets ended Monday in the red amid persistent concerns over rising inflation around the world.

While uncertainties over the Russia-Ukraine war continue, the lack of any relaxation in China's "zero tolerance" COVID-19 policy and the tightening of measures in the financial center of the country, Shanghai, raised concerns that global inflationary pressures would rise.

The investor sentiment index for the eurozone continued to fall in May, plunging to its lowest level in 23 months, according to a report by research group Sentix released on Monday.

The index, which measures the six-month economic outlook for the eurozone based on a survey of some 2,800 investors and analysts, fell to minus 22.6 in May, the lowest point since June 2020, from minus 18.0 in April.

With these developments, the Stoxx Europe 600 benchmark index slipped 2.90% to 417.46 points.

The UK’s FTSE 100 index was down 2.32% to 7,216 points, while France’s CAC 40 index fell 2.75% to 6,086.02 points.

Italy’s FTSE MIB 30 index recorded a loss of 2.75% to close at 22,832.56 points.

The downward trend in European stocks also followed European Commission chief Ursula von der Leyen’s Friday remarks that Europe should end its dependence on Russian gas.

“Russia is no longer a reliable partner,” she told a virtual conference hosted by German daily Frankfurter Allgemeine Zeitung.