Latest News

European Stocks Sharply Lower; BOE, SNB Set to Follow Fed’s Lead

European Stocks Sharply Lower; BOE, SNB Set to Follow Fed’s Lead By Investing.com

Breaking News

‘;

Stock Markets 3 hours ago (Sep 22, 2022 08:52)

© Reuters.

By Peter Nurse

Investing.com – European stock markets traded sharply lower Thursday as investors digested another large interest rate hike by the U.S. Federal Reserve, likely setting the scene for aggressive monetary tightening by the Bank of England and the Swiss National Bank.

By 03:35 ET (07:35 GMT), the DAX in Germany traded 1.1% lower, the CAC 40 in France fell 1.2%, and U.K.’s FTSE 100 fell 0.7%.

The U.S. central bank lifted rates by 75 basis points on Wednesday as widely expected, and pointed to more rate hikes ahead, a steeper and longer trajectory than markets had priced in.

Fed Chair Jerome Powell said the central bank is now willing to risk weakness in the economy as it moves to rein in inflation. This slowdown is likely to have a wider impact given the U.S. economy’s role as a major global growth driver.

Other major central banks are also expected to aggressively hike rates later Thursday to curb high inflation, with the Bank of England, the Swiss National Bank, and the Norges Bank in Norway all scheduled to hold meetings today.

The European Central Bank raised its interest rates by 75 basis points last week, and will need to continue doing so despite slowing growth as inflation is too high, said European Central Bank board member Isabel Schnabel earlier Thursday.

The main economic data release in Europe Thursday will be consumer confidence figures for the Eurozone, which are expected to show a deterioration in September to -25.8, from -24.9 in August.

In corporate news, Credit Suisse (SIX:CSGN) stock fell 3% after the Financial Times reported that the Swiss lender has drawn up plans to split its investment bank in three, looking to sell profitable units in order to prevent a damaging capital raise.

HSBC (LON:HSBA) stock fell 1.3% after the bank’s asset management unit said it will phase out coal-fired power and thermal coal mining from its listed holdings.

Oil prices edged higher Thursday, rebounding after falling to near two-week lows during the previous session as a combination of inventory stock builds, a tightening monetary policy, and a stronger dollar weighed.

U.S. crude inventories rose by 1.1 million barrels last week, according to data from the Energy Information Administration. Additionally, the hawkish stance of the Federal Reserve raised fears of a global recession while also lifting the dollar to a 20-year high, making crude more expensive for foreign buyers.

By 03:35 ET, U.S. crude futures traded 0.7% higher at $83.52 a barrel, while the Brent contract rose 0.6% to $90.35. Both contracts fell more than 1% on Wednesday, and are on track for the first quarterly loss in more than two years.

Additionally, gold futures fell 0.5% to $1,666.90/oz, while EUR/USD edged 0.1% higher to 0.9850.

European Stocks Sharply Lower; BOE, SNB Set to Follow Fed’s Lead

Dow Futures Rise 90 Pts; Investors Digest Fed Move Ahead of Jobless ClaimsBy Investing.com – Sep 22, 2022

By Peter Nurse
Investing.com — U.S. stocks are seen marginally higher Thursday, bouncing after the previous session’s sharp losses, as investors digest another large…

Uniper to keep UK coal plant open this winterBy Reuters – Sep 22, 2022

(Reuters) -Germany’s Uniper said on Thursday it would keep open a unit at its Ratcliffe coal power station in Britain to help shore up electricity supplies this winter. Countries…

Man United reinstates forecast after quarterly loss narrowsBy Reuters – Sep 22, 2022

(Reuters) – Manchester United reinstated its financial forecast for 2023 on Thursday, expecting to report higher annual core profit despite the Premier League club failing to…

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