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European stocks stable after Fed comments on rate hike

After minutes of the Federal Reserve’s latest policy meeting showed that a “substantial majority” of officials believed the pace of rate hikes should slow in the coming months, European stocks were stable on Friday.

The region’s STOXX Europe 600, up more than 9% over the past month, was flat in early trading, while London’s FTSE fell 0.1%.

US markets were closed for Thanksgiving on Thursday, with Wall Street benchmark S&P 500 and tech-heavy Nasdaq Composite ending the previous session up 0.6% and 1% respectively.

The minutes of the November Fed meeting, where the Fed raised its key policy rate by 0.75 percentage points for the fourth time in a row, showed that while the majority of officials were committed to slowing the pace of rate hikes soon, some Inflation in the department “shows little signs of abating so far,” he said.

Still, minutes released Wednesday revealed officials believed their aggressive tightening campaign was beginning to bear fruit. “Financial conditions tightened significantly, and the impact was evident in the most interest rate-sensitive sectors of the economy.”

Steven Blitz, chief U.S. economist at TS Lombard, said the Fed was “ready to slow the pace of rate hikes because it believes it can slow inflation without triggering a recession and increasing unemployment. We are prepared and concerned,” he said. Points up in December. The Fed “will ruin the day if it doesn’t,” he added.

Inflation in the US eased in October, with annual inflation slowing to 7.7%, the lowest level since January. The data sparked a rally in the stock market, but some investors fear interest rates will remain stubbornly high for most of next year. wondering how much is left to run.

Data released Wednesday showed business activity in the eurozone contracting for the fifth straight month, according to S&P Global’s Flash Eurozone Composite Purchasing Managers Index.

Business surveys documented lower factory output, fewer new orders and slower job growth, but there was some good news as well. Supply constraints eased, cost pressure eased, businesses reported brighter outlook for next year, and a deep recession next year.

Asian stocks rose on Thursday morning following the rise in the US. Hong Kong’s Hang Seng Index rose 0.7%, Japan’s TOPIX rose 1.2% and China’s CSI 300 fell 0.4%.

https://www.ft.com/content/b499ba3b-65db-4678-a99b-0fcd209178f9 European stocks stable after Fed comments on rate hike

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