European stock markets experienced a significant downturn, closing over 1% lower this Friday.Stronger US employment data triggered the drop, hinting the Federal Reserve may maintain higher interest rates longer.The slump in European indices contrasted with gains on Wall Street, ending a week of mixed performances across Europe after a buoyant March.Notably, Ocados shares in London took a nearly 9% hit, furthering the decline after the announcement of the companys presidents departure.European indices experienced pressure: Frankfurts DAX down 1.30% to 18,163.94, Londons FTSE 100 dropped 0.81% to 7,911.16, Pariss CAC-40 decreased by 1.11% to 8,061.31.European Markets Retreat Sharply as US Rate Hike Fears Intensify.
(Photo Internet reproduction)Expectations for the Fed to keep interest rates steady until June surged following the job report.The US economy added a surprising 303,000 jobs in March, smashing analysts expectations.This indicates robust economic activity that could complicate the Feds inflation control efforts.Meanwhile, European data showed a 0.5% month-on-month decline in retail sales for February, slightly worse than expected.Germanys modest 0.2% growth in factory orders also fell short of forecasts, underscoring the continents economic challenges.Ocados notable decline influenced Londons market downturn, reflecting concerns over corporate leadership changes and their stock impact.Milans FTSE Mib index and firms like Snam SpA and Italgas declined, but Ferrari saw a 1.27% gain.Luxury sector stocks like Pernod Ricard and LVMH faced setbacks in Paris, revealing market sensitivity to economic indicators and monetary policy.As European markets reel from the impact of potentially prolonged high US interest rates, investors are closely monitoring developments.Lisbons PSI 20 and Madrids Ibex-35 also reported notable losses.This reflects a cautious stance in the face of economic uncertainties, particularly concerning inflation and growth prospects.