Stocks Slide as European Stagflation Fears Mount: Markets Wrap

European stock markets rise as German producer prices drop, China's rate cut disappoints, and the UK housing market slumps; oil prices rebound on tight supplies and expectations of lower output.

European markets retreated on Friday as traders assessed the future of monetary policy and expressed concerns about China's real estate sector, leading to a decline in stocks across various sectors and major bourses.

European stock markets were higher, with health-care stocks leading gains, while autos stocks declined following grim PMI figures for Germany; investors are also focusing on earnings and central bank comments in the U.S.

Weak European data caused the euro to decline and led to a rise in bond and share markets, while investors awaited Nvidia's results to assess the viability of the tech sector's high valuations.

The euro falls to a more than two-month low as weaker than expected euro zone data weighs on the currency, while world stocks rebound amid anticipation for Nvidia's earnings results and Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole summit.

European bonds and stocks fell as inflation data suggested that inflation in the euro region may not be fully subsiding, while utilities led the decline in the Stoxx Europe 600 and the German and Spanish inflation data complicated the outlook for European policy makers.

European stocks and Asian equities declined as disappointing data from China raised concerns about the country's economic recovery, with the Stoxx 600 dropping 0.7% and the MSCI Asia Pacific Index heading for its first drop in seven days.

European shares fall to one-week lows due to weak China and euro zone data, as concerns over slowing global growth increase.

Stocks on Wall Street are expected to decline as concerns about inflation raise doubts about the Federal Reserve's decision to cut interest rates, while worries about crumbling demand and falling German industrial orders add to the uncertainty.

European stock markets weakened on Thursday due to signs of slowing growth in Europe and China, as well as concerns about future Federal Reserve tightening. German industrial production fell more than expected, adding to the struggles of the eurozone's largest economy. China's exports and imports also fell in August, indicating continued pressure on its manufacturing sector. Additionally, stronger-than-expected US inflation data raised concerns about sticky inflation. Oil prices fell as signs of slowing Chinese growth overshadowed a draw in US inventories.

European stock markets edged higher as investors digested positive French industrial production data, although major cash indices are on track to register losses for the week, and the pan-European benchmark index has experienced seven consecutive days of losses. French industrial production rebounded more than expected in July, while figures for Spain showed a smaller-than-expected decline. However, German industrial production fell more than expected in July, and economic growth in the eurozone for the second quarter was just 0.1%. Concerns about the strength of the Chinese and Japanese economies have also risen. The tech sector is under pressure due to Apple's difficulties in China, and oil prices have retreated but are still on course for gains this week.

European markets were stagnant as investors awaited a decision from the European Central Bank on whether to raise interest rates for the tenth consecutive meeting, while carmaker shares dropped following an investigation into electric vehicle subsidies by the European Commission and concerns over Chinese retaliation. Additionally, the oil market is keeping a close eye on the possibility of crude prices reaching $100 a barrel as Saudi Arabia and Russia plan to extend production cuts until the end of 2023.

European markets were slightly lower as concerns over higher interest rates emerged from recent central bank decisions, with the pan-European Stoxx 600 index down 0.1%, while construction and material stocks dropped 0.9% and mining stocks added 0.9%.