Stock markets in Western Europe are falling during trading on Tuesday after a noticeable increase on Monday. According to analysts, volatility in the markets is associated with global uncertainty caused by high inflation rates, the course of world central banks to tighten monetary policy, general geopolitical tensions and an outbreak of coronavirus in China. Investors’ attention is riveted to the World Economic Forum in Davos, they are also analyzing the latest European statistics. The index of business confidence in the French economy in May fell to a 14-month low and amounted to 106 points compared to 108 points a month earlier, data from the national statistical office Insee showed. Analysts, on average, expected a decrease in the indicator this month to 107 points, writes Trading Economics. The composite Purchasing Managers’ Index (PMI) of 19 eurozone countries fell to 54.9 points this month from 55.8 points in April, according to preliminary data from S&P Global. The indicator also turned out to be less than analysts’ expectations at the level of 55.3 points. The indicator of activity in the sphere of services of the euro zone in May decreased to 56.3 points from 57.7 points in November. PMI in the manufacturing industry of the currency bloc fell to 54.4 from 55.5 points. The composite index of the largest companies in the region Stoxx Europe 600 by 11:40 Moscow time fell by 0.85% and amounted to 432.85 points. The German DAX and the French CAC 40 lost 0.9% and 1.3% respectively. Britain’s FTSE 100 is down 0.7%, Italy’s FTSE MIB is down 0.9% and Spain’s IBEX 35 is down 0.6%. French aircraft engine maker Safran SA is down 2.8%. The joint venture of the company with the American General Electric – CFM reported that it was delaying the production of engines. The share price of Air France-KLM falls by almost 7%. The airline intends to sell 1.93 billion new shares to raise 2.26 billion euros. The capitalization of the German manufacturer of power equipment Siemens Energy AG is reduced by 0.03%. The company is planning a restructuring, which, among other things, involves cutting the positions of top management to speed up decision-making. The value of the British energy company Drax Group PLC collapsed by 18% after Citi analysts downgraded the recommendation for the shares of the company to “sell” from “neutral” and reduced the target price of shares. Source: FINMARKET.RU

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