(News Bulletin 247) – Despite good quality PMI indices published in the morning, European stock markets fell this Friday (-1.9% in London, -2% in Frankfurt and Paris) in a context of a sharp upturn in concerns about the banking sector.

“The interest rate hikes recently decided by the major central banks have somewhat revived concerns about the stability of the banking system,” explains Kiplink Finance in its morning update.

According to the Parisian management company, ‘fears about the soundness of the banking system continue to haunt the markets despite attempts by political and monetary leaders to calm things down’.

These concerns therefore weigh heavily on banking stocks, in particular Deutsche Bank (-11% in Frankfurt), but also BNP Paribas (-7% in Paris), UniCredit (-5% in Milan) or even Barclays (-5% in London).

Still on the values ​​front, Volkswagen dropped 4% in Frankfurt, penalized by a lowering of Stifel’s advice from ‘buy’ to ‘hold’ on the title of the car manufacturer, with a price target halved to 149 euros.

Fears for the financial sector overshadow an S&P Global composite PMI of overall activity in the euro zone which rose to 54.1 in flash estimate for March, a ten-month high, from 52.0 in February.

‘The survey also signals a further easing of inflationary pressures during the month, with purchase prices even falling sharply in the manufacturing industry. At the same time, job growth accelerated in March,’ points out S&P Global.

‘As the employment index continues to rise, it is clear that pricing pressures remain elevated, leaving us comfortable with our forecast of a further 100 basis point cumulative rate hike. of the ECB’, reacts Capital Economics.

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