• European stocks are set to close 2022 on a bearish sentiment due to global headwinds.
• Causes of bearish sentiment include the Russia-Ukraine war, record high inflation, and tightening monetary policy.
• The STOXX Europe 600 Index Continuous Contract is down approximately 12 percent in the past twelve months.
The European stock market is poised to end the year 2022 on a bearish sentiment, due to the various macroeconomic factors that have been causing global headwinds. Since the Kremlin imposed an indefinite oil cut-off to Eurozone countries, the European stocks have experienced more headwinds in the past few months.
The Euro economic zone is set to experience more headwinds in 2023 and forward, due to the ongoing Russia-Ukraine war, record high inflation, and tightening monetary policy. Furthermore, the Euro to US dollar derivative has been below the ratio of 1 for the first time since the 2008 financial crisis in 2022.
The bearish sentiment is not only affecting European stocks, but also global markets. The poor stock performance of the United States’ cryptocurrency and big tech companies have been a major contributing factor to the global bear market. Thus, trading later today, the FTSE 100 exchanged at 7,497.01, down approximately 0.21 percent.
The STOXX Europe 600 Index Continuous Contract has been one of the worst hit markets, falling approximately 12 percent in the past twelve months. This is the direct result of the aforementioned macroeconomic factors that have been causing the bearish sentiment.
The European stock market has not been able to recover from the bearish sentiment, and it looks as if it is set to end the year 2022 in the same manner. As such, it is highly recommended that investors exercise extreme caution when investing into European stocks and other global markets in the near future.