Business

European stock markets close Tuesday in red

Italy’s FTSE MIB struggles most, dropping 1.04% from previous close

European stock markets closed in the red Tuesday amid Walmart’s disappointing forecasts, the IMF’s downward revision of growth forecasts, Russian gas cuts and the expectation of a rate hike from the US Federal Reserve later this week.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was down 0.02% to 426.14 points.

The UK’s FTSE 100 was flat at 7,3016, while Germany’s DAX 30 lost 113.4 points, or 0.86%, to hit a one-week low of 13,097.

France’s CAC 40 ended its three-session rally, falling 26.1 points, or 0.42%, to 6,212.

Italy’s FTSE MIB, struggled the most,dropping 222.7 points, or 1.04%, to end the day at 21,160 as investors are monitoring the country’s political crisis.

Spain’s IBEX 35 fell 16 points, or 0.20%, to finish at 8,070.

The IMF downgraded its global economic growth forecast Tuesday for 2022 by 0.4 percentage points to 3.2% and for 2023 by 0.7 percentage points to 2.9%.

Walmart lowered its quarterly and full-year profit forecasts, negatively affecting the stocks of other retailers.

Russian energy giant Gazprom said it would again drastically cut gas supplies to the EU through its main pipeline due to maintenance work.

Economists are anticipating another hike of 75 basis points after the Fed meeting Wednesday.

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