European stock markets close August lower due to fear of the fall of the economy

The main european bags They have closed this Thursday with a drop and have ended August with large falls affected by the deterioration of the large economies, to which the problems of the real estate sector in China have been added.

London has lost 3.38% this month; Frankfurt 3.04%; Milan 2.74%, Paris 2.42%, while Madrid, which has performed better in the last ten days, left 1.41%. The Euro Stoxx 50 index posted losses for the month of 3.9%.

This Thursday, marked by the publication in the euro area of ​​inflation for August and by the US PCE private consumption data for last month, Frankfurt gained 0.35%, while Paris lost 0.65%; Madrid, 0.47%; London, 0.46%; and Milan, 0.29%, according to market data consulted by EFE.

The stock markets started today with a positive sign, although London and Paris soon began to trade undecided, a trend that they maintained throughout the session. The rest have been in the green for most of the session, although after the opening of Wall Street they moderated their gains.

Investors were awaiting the advance inflation data for the euro area for August, which has repeated at 5.3% year-on-year already registered in July, while the core has fallen two tenths, to that same 5.3%.

The unemployment rate for July was also published, which has repeated at 6.4% in June, in line with what was expected by the experts.

The persistence of inflation puts pressure on the European Central Bank (ECB) to further raise interest rates, say some analysts.

In the United States, investors have learned that the PCE private consumption deflator for July rose to 3.3% after two months of falls and the underlying rate rose one tenth, to 4.2%, both data in accordance with what predicted by analysts.

This publication is one of the major references of the US Federal Reserve (Fed) when deciding whether or not to continue with rate hikes in the country.

At the close of the stock markets, Brent oil, the benchmark in the Old Continent, rose 0.91%, to $86.64 per barrel, and the euro depreciated 0.73%, to $1.0844.

In the debt market, the ten-year German bond, considered the safest, has closed with a yield of 2.459%, 8.1 basis points less than the day before.