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Europe close: Major indices end week with big declines

By Alexander Bueso

Date: Friday 21 Jan 2022

Europe close: Major indices end week with big declines

(Sharecast News) - European stocks were again registering sharp losses on Friday as stocks in the US and Asia fell back overnight triggered by rate rise fears and as poor corporate results dampened sentiment.
The pan-European Stoxx 600 was down by 1.84% or 8.91 points to 474.44 with all regional bourses sharply lower alongside.

In the UK, official data showed retail sales plunged 3.7% in December as shoppers stayed home during the key Christmas period on worries over the surge in Omicron Covid variant cases.

"More gloom is descending as investors digest some major earnings disappointments, adding to concerns of an accelerating monetary tightening schedule," said Interactive Investor head of markets Richard Hunter.

"The latest catalysts for another downward lurch came from Netflix and Peloton. The former announced weak subscriber growth which was far short of expectations, and potentially as a result of the post-pandemic boost evaporating."

"Peloton, meanwhile, announced that it was halting production for February and March to adjust for lower demand, sending its shares down by 24%."

Hunter said the news played into investor concerns that the "pandemic-related demand for consumer goods was not sustainable".

In equity news, Anglo-Australian miner Rio Tinto fell after Serbia revoked its lithium exploration licences over environmental concerns, hurting the group's ambition to become Europe's largest supplier of the metal used in electric vehicles.

Airbus shares were lower after the plane maker said it had cancelled a contract with Qatar Airways for 50 A321neo jets.

Siemens Energy plunged 14% after cutting its forecast as wind unit Siemens Gamesa warned of prolonged supply chain issues, renewing pressure on the German firm to fully take over the unit. Shares in Gamesa were down more than 9%.


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