• European stocks are likely to close 2022 on a bearish sentiment as global markets prepare to close trading later today.
• Fueled by the ongoing Russia-Ukraine war, record high inflation, and tightening monetary policy, the Euro economic zone is set to experience more headwinds in 2023 and forward.
• The STOXX Europe 600 Index Continuous Contract is down approximately 12 percent in the past twelve months, while the FTSE 100 exchanged at 7,497.01, down approximately 0.21 percent.

European stocks are set to close 2022 on a bearish sentiment as global markets prepare to close trading later today. The Euro economic zone is facing increased headwinds due to a number of macroeconomic factors, including the ongoing Russia-Ukraine war, record high inflation, and tightening monetary policy. This, combined with the fact that the Euro to US dollar derivative has been below the ratio of 1 for the first time since the 2008 financial crisis in 2022, has caused a decrease in European stock values.

The STOXX Europe 600 Index Continuous Contract is down approximately 12 percent in the past twelve months, while the FTSE 100 exchanged at 7,497.01, down approximately 0.21 percent. Additionally, the sell pressure in global markets has been sustained in 2022, with cryptocurrency and big tech companies from the United States all experiencing a decline in the past twelve months.

The Kremlin’s decision to impose an indefinite oil cut-off to Eurozone countries has further exacerbated the situation and contributed to the bearish sentiment among European stocks. The effect of this has been seen in the decrease in European stock values, with the FTSE 100 down by 0.21 percent and the STOXX Europe 600 Index Continuous Contract down by 12 percent.

It is likely that the bearish sentiment among European stocks will continue into 2023. With Russia and Ukraine still at war, record high inflation, and tightening monetary policy, the Euro economic zone is set to experience more headwinds in the coming year. Additionally, the Euro to US dollar derivative is still below the ratio of 1 and cryptocurrencies and big tech companies from the United States are still in decline. This will likely cause further decreases in European stock values.