European equities could follow global peers on Thursday after the Federal Reserve Board of Governors took the first interim steps to the final normalization of its ultra-easy monetary policy ..
After stabilizing interest rates, the Fed has indicated that it plans to begin raising interest rates in 2023 earlier than previously predicted.
Bond yields have risen the most since early March, with the dollar boasting the strongest one-day rise in 15 months as the Federal Reserve has pushed ahead with expectations of the first post-pandemic rate hike.
Meanwhile, the Central Bank of Brazil raised key interest rates by 75 basis points on Wednesday, suggesting another rate hike of the same magnitude at the next meeting.
Policymakers saw the need for rate hikes to mitigate the spread of temporary shocks to inflation.
Asian market Gold fell sharply after holding back its biggest fall in five months, and oil prices fell due to the stronger dollar.
It’s a quiet day in terms of economic data, and could focus on the final eurozone inflation in May.
Across the Atlantic, weekly unemployment claims and Philly FED manufacturing numbers can shake the mood of the market.
US stocks fell overnight as the Federal Reserve raised inflation expectations and predicted a rate hike in 2023, when economic activity was hot. Eleven Fed officials expect at least two rate hikes by the end of 2023, while seven officials expect rate hikes in 2022.
The Dow fell 0.8%, the S & P 500 fell 0.5%, and the tech-intensive Nasdaq Composite fell 0.2%.
European stocks ended mixed on Wednesday, before the Federal Reserve Board’s decision was announced. The Pan-European STOXX 600 rose 0.2% to a record high.
France’s CAC 40 index and the UK’s FTSE 100 both rose about 0.2%, while Germany’s DAX fell 0.1%.
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European stocks fall to Hawkish Fed surprise
Source link European stocks fall to Hawkish Fed surprise