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Global Economic Calendar

European Stocks On Longest Losing Streak Since 2016

Persistently high inflation and signs of slowing economic growth have European stocks on their longest losing streak since 2016.

Equities in Europe have now fallen for eight consecutive days, marking the longest stretch of losses since November 2016.

Economists say inflation that remains above 5% and higher interest rates are threatening to push Europe into stagflation, which hasn’t been seen on the continent since the late 1970s.

Stagflation arises when there is persistently high inflation despite stagnant economic growth.

Economic concerns have the benchmark Euro Stoxx 50 index trending below its 200-day moving average for the first time since early 2022 and testing a major support level around 4200 that has been in place since May of this year.

The European Central Bank (ECB) is widely expected to continue raising interest rates in the near-term, with its next decision scheduled for mid-September.

Meanwhile, European markets have seen net outflows of capital for 26 consecutive weeks as investors look for opportunities elsewhere, according to data from Bank of America (BAC).