Europe’s stocks fall as inflation concerns accumulate

European stocks fell as investors’ concerns about rising energy prices and events in China are building up. Stock indexes have been dragged lower in choppy trading in recent weeks.

Frankfurt’s DAX was 0.3% lower, underperforming other European indexes. Germany’s ZEW survey of economic sentiment weakened for the fifth straight month Tuesday and hit its lowest level since the Covid-19 pandemic first rocked the country in March 2020.

Shares in low-cost carrier EasyJet fell 1.8% in London, after the airline forecast a GBP1.2 billion loss this year. Investors are contending with an energy crunch that threatens to add to inflationary pressures just as signs emerge that global economic growth is slowing.

The energy crisis shows no signs of abating, which means considerable cost pressures on companies and consumers facing the prospect of having less money.