Why are European stock markets falling? Most Western European stock indices are moderately declining as investors assess many quarterly reports from major European companies. Also market participants are waiting for the outcome of the European Central Bank meeting in October. The ECB is expected to raise key interest rates again by 75 bps.

European stock bear market – what is going on?

The European Central Bank is limited in its ability to refuse to significantly raise interest rates soon, as consumer price growth in the euro area is probably not yet reached its peak, BlueBay Asset Management chief investment officer Mark Dowding told Dow Jones.

It was reported today that the German Consumer Confidence Index, a leading index of confidence in the German economy, rose slightly from a historic low. The November indicator, calculated by the research company GfK, was minus 41.9 points compared to a revised minus 42.8 points in October, which was generally in line with experts’ expectations. The index rose for the first time in five months.

The value of the indicator fell to minus 42.5 points compared to minus 36.8 points in September. This was the record low for the fourth month in a row. Analysts on average predicted a less significant drop to minus 39 points, reports Trading Economics.

Meanwhile, Spain’s unemployment rate rose to 12.67% in the third quarter from 12.48% a quarter earlier.

Earlier, we reported that Asian stock markets are rallying right now on expectations of Fed action.