# European stocks slip on dour German sentiment survey ahead of Powell speech Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: European Shares Slip on German Consumer Sentiment Data, Meta Description: European shares dip as German consumer sentiment drops due to high energy costs and anticipation of US interest rate hikes. Stay updated with expert analysis. URL: https://financedigest.com/european-stocks-slip-on-dour-german-sentiment-survey-ahead-of-powell-speechhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-26t073600z1lynxmpei7p06zrtroptp4europe-stocks-1736815360293-compressed.jpg) By Anisha Sircar (Reuters) -European shares slipped on Friday as investors fretted over downbeat German consumer sentiment data due to rising energy costs and the path for U.S. interest [rate hikes ahead of Federal Reserve Chair Jerome Powell’s](https://www.financedigest.com/dollar-jumps-as-powell-flags-higher-terminal-rate.html "Dollar jumps as Powell flags higher terminal rate") speech at Jackson Hole. The pan-European STOXX 600 dipped 0.1% in choppy trade, after [rising at the open](https://www.financedigest.com/the-future-of-financial-services-how-apis-are-fuelling-the-rapid-rise-of-open-banking.html "The future of financial services – how APIs are fuelling the rapid rise of Open Banking"). European Central [Bank policymakers appeared increasingly concerned that high inflation](https://www.financedigest.com/be-really-really-careful-on-inflation-bank-of-englands-haskel.html "Be ‘really, really careful’ on inflation – Bank of England’s Haskel") is getting entrenched, minutes of the July 21 showed on Thursday, even as recession risks loomed. The STOXX was on pace to [end the week](https://www.financedigest.com/european-shares-end-five-day-losing-streak-still-down-for-the-week.html "European shares end five-day losing streak, still down for the week") down nearly 1% and log its second straight weekly decline. German consumer sentiment is set to hit a record low for the third month in a row in September, a new survey showed, as [households brace for surging energy bills](https://www.financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zero.html "44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero"). In contrast, French [consumer confidence](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") unexpectedly rose in August. [“German recession](https://www.financedigest.com/german-economy-expected-to-skirt-recession-economy-ministry-report.html "German economy expected to skirt recession – economy ministry report") fears just became more intense with the sentiment index falling to a new record low… Germany is particularly reliant on external energy producers, and people are saving at the highest in 11 years, showing consumers are taking precautions in case of the worst case scenario,” said Sophie Lund-Yates, lead equity analyst at [Hargreaves Lansdown](https://www.financedigest.com/uks-hargreaves-lansdown-ceo-hill-to-step-down.html "UK’s Hargreaves Lansdown CEO Hill to step down"). Elsewhere, regulator Ofgem said British energy bills will [rise an eye-watering 80% to an average of 3,549 pounds](https://www.financedigest.com/dollar-slips-after-upbeat-china-data-euro-pound-rise.html "Dollar slips after upbeat China data; euro, pound rise") ($4,188) a year from October, calling it a “crisis” that needed to be tackled by urgent government action. Because a large increase in bills has been expected, the news avoided shocking markets, but [across Europe](https://www.financedigest.com/air-pollution-surges-as-heatwave-sweeps-across-europe.html "Air pollution surges as heatwave sweeps across Europe"), which has a large exposure to discretionary retailers, there could be trouble on the horizon if the situation is prolonged and as consumers look to save instead of spend, which is already playing out in Germany,” added Yates. Tech stocks rose 0.5%, after Nvidia and Amazon fuelled a [rally on Wall Street ahead of Powell’s](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") speech. \[.N\] [Miners gained 0.9% as copper](https://www.financedigest.com/copper-miner-teck-resources-rejects-glencores-22-5-billion-offer.html "Copper miner Teck Resources rejects Glencore’s .5 billion offer") firmed on hopes that Chinese stimulus measures would boost demand. \[MET/L\] Among other stocks, Danish brewery Carlsberg slipped 0.6% after [saying its Poland subsidiary could cut or halt beer production](https://www.financedigest.com/over-half-of-britons-say-loyalty-cards-encourage-them-to-buy-a-product-niq.html "Over half of Britons say loyalty cards encourage them to buy a product – NIQ") due to a lack of carbon dioxide deliveries. Germany’s Salzgitter Maschinenbau Group rose 0.7% after private equity firm Dymon Asia said it was [buying the lifting equipment maker’s](https://www.financedigest.com/sega-sammy-says-it-is-considering-buying-angry-birds-maker-rovio.html "Sega Sammy says it is considering buying Angry Birds maker Rovio") Singapore unit. [Shares of Britain’s Micro Focus nearly doubled after Canada’s OpenText agreed to buy](https://www.financedigest.com/uks-bellway-to-buy-back-shares-hike-social-housing-output.html "UK’s Bellway to buy back shares, hike social housing output") the enterprise software maker in an all-cash deal for $6 billion. (Reporting by Anisha Sircar in Bengaluru: Editing by Sriraj Kalluvila) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---