European stocks declined Thursday amid renewed concern that higher interest rates, energy prices near records and a lower U.S. dollar will hurt profit growth. Indexes failed to sustain an earlier rally that was led by commodity companies.
“Rising rates, higher oil prices and the dollar weakening are enough reasons for stock markets to fall,” said Christian Zimmermann, a fund manager at Activest in Munich. “In the long run, the economy will slow.”
The Dow Jones Stoxx 600 index, which reached a five-year high on Tuesday, dropped 0.3 percent. The Stoxx 50 slid 0.4 percent, and the Euro Stoxx 50 index for the 12 countries using the euro lost 0.7 percent. National benchmarks fell in 14 of the 18 Western European markets.
Bears rise up: Asian stocks dropped the most in a month after the Federal Reserve doused speculation it will stop raising interest rates. Sony Corp. and Hyundai Motor Co. fell on concern higher U.S. borrowing costs will cut demand.
“Investors are still bearish on exporter stocks right now on the unclear outlook for U.S. rates,” said Hideo Arimura at Dai-Ichi Kangyo Asset Management Co. in Tokyo.
The Morgan Stanley Capital International Asia-Pacific index slid 0.9 percent, its biggest loss since April 12. Eight of its 10 industry groups fell. In Japan, the Nikkei 225 index slipped 0.5 percent. The broader Topix index lost 0.8 percent. India’s main index sagged 1.4 percent, the biggest drop in the region.
