European Stocks Close Broadly Lower

(RTTNews) - European stocks closed broadly lower on Monday as investors made largely cautious moves amid mounting fears of a global recession due to rising interest rates.

A renewed selloff in British gilts pushed euro zone yields higher after Britain's new chancellor Kwasi Kwarteng announced a sweeping package of tax cuts.

The British Pound tumbled to a record low of $1.0382 today.

Markets were weighed down by comments from European Central Bank President Christine Lagarde that interest rates will need to rise over the next policy meeting notwithstanding slowing growth.

Investors were also digesting the victory of a right-wing bloc led by Giorgia Meloni in Italy's parliamentary elections on Sunday.

the Ifo institute said its business climate index fell to 84.3 from 88.5 in August, with both the current assessment component and expectations dropping significantly.

Expectations are now at their lowest level since the financial crisis as a result of high inflation and concerns over its implications on corporate costs and consumer demand.

The pan European Stoxx 600 fell 0.42%. Germany's DAX declined 0.46%, France's CAC 40 dropped 0.24%, Switzerland's SMI shed 0.79%, while the U.K.'s FTSE 100 edged up 0.03%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Poland, Portugal, Russia, Spain, Sweden and Turkiye ended with sharp to moderate losses.

Netherlands and Norway closed higher.

In the UK market, Hargreaves Lansdown rallied 4.2%. Fresnillo, Entain, Sage Group, 3I Group, Haleon, Spirax-Sarco Engineering and Smiths Group gained 3 to 3.5%.

Reckitt Benckiser, Ashtead Group, Flutter Entertainment, IHG, BAE Systems, Bunzl, Halma and Diageo also moved up sharply.

Taylor Wimpey tumbled more than 7%. Persimmon drifted down 6.6%. Barratt Developments, Berkeley Group Holdings, Segro, Natwest Group and Lloyds Banking Group ended lower by 3 to 5.2%.

In Paris, Engie and Veolia both shed more than 3%. AXA, Societe Generale, Danone, Sanofi, Vivendi, BNP Paribas, Bouygues and Carrefour lost 1 to 2.1%.

Atos, Air France-KLM, Faurecia and Thales gained 2 to 3%. Accor, WorldLine, Valeo and Renault also ended notably higher.

In the German market, RWE, Deutsche Telekom, Vonovia, Bayer, Deutsche Wohnen, Munich RE, Allianz, Continental, Deutsche Bank and Sartorius lost 1.3 to 3.3%.

HelloFresh, SAP, MTU Aero Engines, Daimler, HeidelbergCement, Siemens Healthineers and BMW gained 1 to 2.3%.