Latest News

European Stock Futures Mixed; U.K. Set to Deliver ‘Mini Budget’

European Stock Futures Mixed; U.K. Set to Deliver ‘Mini Budget’ By

Breaking News


Stock Markets 58 minutes ago (Sep 23, 2022 07:18)

© Reuters

By Peter Nurse – European stock markets are expected to open in a mixed fashion Friday, as investors digest a series of interest rate hikes ahead of a fiscal update by the new U.K. administration.

At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.3% lower, CAC 40 futures in France dropped 0.3%, while the FTSE 100 futures contract in the U.K. rose 0.2%.

European equities are heading for deep weekly losses as rising interest rates across the globe threaten to sharply curtail economic growth, weighing on risk appetite.

The Federal Reserve led the way by hiking by 75 basis points and signaling a more aggressive stance towards combating inflation. This was followed in Europe by rate increases from the Bank of England, the Swiss National Bank and the Norges Bank in Norway.

The European Central Bank had also tightened by an unprecedented 75 basis points last week.

The macroeconomic outlook in Europe is bleak, HSBC (LON:HSBA) warned Friday, in a note, as supply disruptions and the impact of Russia’s war in Ukraine on energy and food prices continue to stifle growth, and force central banks to tighten monetary policy aggressively to rein in inflation.

“I would caution against buying Europe because of the cheaper valuations and interest rate movements,” an analyst at HSBC said.

That said, the U.K. market could outperform Friday with new finance minister Kwasi Kwarteng set to deliver his first fiscal update to parliament, a so-called “mini Budget”. He is set to provide more details about his plans to support the country’s economy through what is likely to be a difficult winter.

Economic data due for release in Europe Friday includes Spanish GDP for the second quarter as well as September manufacturing and services PMI numbers for most of the continent.

In corporate news, Aveva (LON:AVV) is likely to be in the spotlight as the Financial Times reported that a major investor in the British information technology consulting company plans to reject Schneider Electric (EPA:SCHN)’s 9.5 billion pounds ($10.66 billion) takeover offer, which the French industrial group launched on Wednesday.

Oil prices fell Friday, on course for a fourth consecutive weekly decline after a series of interest-rate hikes around the world increased fears of a global economic slowdown, hitting the demand for energy.

The decision of Russia to escalate its invasion of Ukraine, mobilizing more troops to stem recent Ukrainian gains, helped stem losses, but both contracts are on course for weekly losses of around 2% in the wake of the monetary tightening, led by the Federal Reserve.

By 02:00 ET, U.S. crude futures traded 0.2% lower at $83.31 a barrel, while the Brent contract fell 0.3% to $90.22.

Additionally, gold futures fell 0.1% to $1,679.65/oz, while EUR/USD traded 0.1% lower at 0.9829.

European Stock Futures Mixed; U.K. Set to Deliver ‘Mini Budget’

Swiss bank UBP returns to Chinese marketsBy Reuters – Sep 23, 2022

(Corrects second paragraph to say the bank exited positions in all Chinese equities, not just mainland-listed equities) By Summer Zhen HONG KONG (Reuters) -Swiss private bank…

Stockholm bourse fines SAS over late pilot strike statementBy Reuters – Sep 23, 2022

STOCKHOLM (Reuters) – SAS said on Friday the Stockholm bourse’s disciplinary committee had slapped the airline with a fine relating to its information handling in connection with…

British sub-prime lender Amigo CEO Jennison to step downBy Reuters – Sep 23, 2022

(Reuters) – British sub-prime lender Amigo Holdings PLC (LON:AMGO) said on Friday its chief executive officer Gary Jennison was stepping down from his role and he would be…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News