Despite a lull in recent days, European stock markets fell again on Thursday amid increasingly volatile markets due to the ongoing conflict in the Middle East.
At the open, the CAC 40 fell by about 0.5%, the German DAX index dropped by about 1.3%, and the London FTSE 100 lost nearly 0.5%, all impacted by a sharp rise in oil prices : Brent crude has indeed approached $90, marking a significant increase that is reigniting global inflation fears.
The rise in oil prices is, in fact, acting as a double negative signal. On the one hand, it raises fears of a return to inflationary pressures, which could force central banks to maintain restrictive monetary policies for longer. On the other hand, it directly weighs on corporate costs and thus on their margins, fueling expectations of an economic slowdown.
Gold falls sharply
In the commodities market, gold paused after two consecutive sessions of gains, trading around $4,300 to $4,400 per ounce during European trading hours, after recently hitting a low of nearly $4,180, its lowest level since December.
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