Home > European stocks tumble, Bitcoin falls to lows of $37K- Market update

European stocks tumble, Bitcoin falls to lows of $37K- Market update

  • Europe’s Stoxx 600 has slipped 2%, while FTSE 100 is down 1.3%

  • Gold has held to reach highs of $1,843 an ounce, while Bitcoin price fell below $38,000 for the first time since September

  • Yields are also down with the 10-year US Treasury at 1.76%

European stocks have declined sharply this Friday to extend the rot seen across global markets even as investors brace for interest rate hikes from the Fed.

The FTSE 100, UK’s blue-chip index is down 99 points or 1.31% to 7,485.82 while the pan-European Stoxx 600 index has slipped 1.9% in afternoon deals. There are losses all across the European markets, with Germany’s DAX index seeing the most losses at 2.2% on the day.

France’s CAC is also down 2.1% to highlight the weakness in stocks after Wall Street slipped on Thursday to see the Dow Jones Industrial Average index extend its declines for a fourth straight day this week.

Heading into US markets opening, the futures suggest a continuation of the broader declines; with Asian markets had closed lower on Friday. Australia’s ASX 200 fell 2.3% while Japan’s Nikkei and China’s Shanghai Composite both declined nearly 1%.

The markets are seeing the pain as analysts and strategists say volatility is likely to continue being a factor short term.

As stocks reel from the sharp sell-off, value stocks have fared slightly well over growth stocks. According to a Reuters report, the gap between value and growth stocks is at its biggest gap in nearly 20 years.

Value shares are up 4.4% compared to the 5.7% slip for growth shares, opening an 11% gap year-to-date.

UBS Global Wealth Management strategist Kiran Ganesh told CNBC’s “Squawk Box Europe” that investors should expect volatility to remain key until when inflation begins to decelerate. But he retains optimism for Nasdaq which would certainly look to rebound higher after recently sinking into a correction.

In bonds, the 10-year US Treasury yield is down to 1.76%, falling 12 basis points to retreat from recent two-year highs. The 10-year UK Treasury yield has also moved lower, clipping 7 basis points to 1.16%.

In commodities, the weakness in yields has seen gold prices edged higher over the past two days, with spot gold rising to $1,843 per ounce.

Elsewhere, Bitcoin price fell sharply to lows of $37,885 on Friday to see it reach the lowest prices since September 2021. The cryptocurrency currently trades around $38,890 but is nearly 8% down on the day and is tracking losses in the broader stock market.

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