Energy stocks outperform STOXX 600
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German July producer prices rise 37.2 yy
Aug 19 Reuters European shares tumbled on Friday and tracked a weekly loss as the highestever jump in German producer prices in July added to gloom over the economic outlook for the region39;s biggest economy and rekindled fears of a recession.
The panEuropean STOXX 600 slid 0.6 in early deals, with travel stocks leading the declines.
Energy stocks were among the few outperformers on the day and week, inching 0.1 higher on Friday.
Energy costs are only expected to go up as winter in the Northern Hemisphere kicks in… European energy is the sector that39;s going to be able to ride through the current environment, said Danni Hewson, financial analyst at AJ Bell.
Skyrocketing energy prices due to the Ukraine war pushed German producer prices in July to their highest ever increases both yearonyear and monthonmonth. Energy prices as a whole jumped 105, compared with July 2021.
Germany39;s DAX lost 1 and the country39;s 10year yields rose to their highest in four weeks.
The European Central Bank is going to have to keep raising rates, because otherwise people will begin to question their credibility even further… We39;re likely going to see a hike of the same size as they have already done, but whether there would be a more aggressive move is anyone39;s guess, since they are walking…