Stock markets across Europe today wavered nervously as trading struggled to recover from the downturn sustained last week in global stock exchanges.

Trading indexes across Europe were largely marginally up on close yesterday, or fairly consistent by the close of play today after a day of inconsistent trading.

The news comes after last week’s international stock market struggle, in which bad trading figures and widespread share sales from the US has a knock-on effect on the rest of the world’s markets.

It appears that even several days after the event, stock markets across Europe are still wobbling under the pressures of rising interest rates and the potential impact on consumer spending over the coming weeks.

It is feared that the increase in interest rates across Europe and further afield, fuelled by almost universal inflationary pressures, could have a negative impact on company profits with the increased cost of borrowing and apparent direct link with consumer spending.

With consumers paying more for their mortgages, it is thought that spending on the high streets of Europe will begin to decline over the coming weeks and months, fuelling the lack of interest in share purchasing and market confidence.

As such, share trading has been comparatively timid on markets across Europe, reflect the adversity to risk of the investment market in the current economic climate.

Both the Dax and Cac increased marginally on yesterday, while the FTSE 100 in London was the only major stock market to post a drop in value of the course of trading.

The European Central Bank is thought to be on the verge of announcing a change in interest rates, with news to come this Thursday.

However experts are currently predicting that the rate will remain stable throughout the Eurozone over the course of next month.

Tags: European Stocks & Shares News //