Categories: Emerging MarketsEuropeInternational Investing

Emerging Market Turmoil, Deflation Jitters Hurt European Shares

Albertane

Emerging Market Turmoil, Deflation Jitters Hurt European Shares (Reuters)

European stocks fell on Friday, posting their first monthly loss since August and slowed by concerns that corporate earnings will slide due to weak emerging markets. Also roiling investors, data showed an unexpected drop in euro-zone inflation, reviving fears that the currency bloc could slip into deflation. The FTSEurofirst 300 index of top European shares slid 0.2 percent to 1,291.17 points, causing a monthly loss of 1.9 percent. The index dropped as much as 1.6 percent during the session, before late-day short covering cut losses, traders said. The euro zone’s blue-chip Euro STOXX 50 index ended 0.4 percent lower at 3,013.96 points, with technical charts showing the benchmark index slipping below a positive trend line started in June, sending investors a bearish signal. The Euro STOXX 50’s next barrier on the downside is 2,916 points, representing a low that was hit in mid-December. Below that line, the index’s next big support level will be at 2,877 points, the 200-day moving average.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.