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European Bourses Track Lower Midday on Recession, Central Bank Outlooks

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Last updated: 06/22/2022 07:40:45

07:40 AM EDT, 06/22/2022 (MT Newswires) -- European bourses tracked lower midday Wednesday, on prospects for a global recession as major central banks cinch up on monetary policies to fight inflation. Oil and tech shares paced decliners.

Market denizens also weighed a pre-bell New York futures market flashing red, and lower closes overnight on Asian exchanges.

European Central Bank Vice President Luis de Guindos said the ECB does not anticipate a continental recession in 2023, unless triggered by a possible European Union embargo on Russian natural gas.

The pan-continental Stoxx Europe 600 Index was off 1.4% mid-session.

The Stoxx Europe 600 Technology Index was off 1.9%, and the Stoxx 600 Banks Index fell 0.8%.

The Stoxx Europe 600 Oil and Gas Index was off 3%, and the Stoxx Europe Food and Beverage Index was down 0.2%.

The REITE, a European REIT index, was off 1%, while the Stoxx Europe 600 Insurance Index fell 1.2%.

On the national market indexes, Germany's DAX was off 1.8%, the FTSE 100 in London was down 1%, and the CAC 40 in Paris fell 1.5%. Spain's IBEX 35 slipped 1.5%.

Yields on benchmark 10-year German bonds tracked lower, near 1.64%.

Front-month North Sea Brent crude oil futures were down 3.8% at $110.26 per barrel.

The Euro Stoxx 50 volatility index rose 4.8% to 29.45, indicating moderately above-average volatility for European stock markets in the next 30 days, although lower than early March when the index crossed 50. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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