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European stock markets are expected to decline on Friday, following Wall Street and Tokyo.
According to Federal Reserve Chairman Jerome Powell, the scenario of a half-point rate hike in early May and a series of additional hikes thereafter is likely to occur.
Index futures suggest a decline of 1.82% for the CAC 40 in Paris, 1.44% for the Dax in Frankfurt, 1.22% for the FTSE 100 in London and 1.71% for the EuroStoxx 50.
A 50 basis point increase in the federal funds rate target will be “on the table” at the May 3 and 4 monetary policy meeting, explained Jerome Powell on Thursday after the close of European markets. He is considering the scenario favored by the markets, i.e. a series of half-percentage point hikes in the coming months.
At the same time, in the euro zone, the scenario of a first rate hike in July continues to be reinforced by statements from European Central Bank (ECB) officials. The general climate thus seems unfavorable for equities, especially since the prolonged confinements in China are likely to fuel inflation in the weeks and months to come.
Wall Street finished sharply lower on Thursday after giving up its initial gains, as Jerome Powell’s statements brought interest rate hikes back to the forefront of investors’ minds.
The indices had started positively after a series of good results such as those of Tesla (+3.23%) or several airlines. But the comments of Jerome Powell have made the major growth stocks, such as Alphabet (-2.51%) or Amazon (-3.7%).
On the Tokyo Stock Exchange, the Nikkei index ended down 1.63%, a decline that particularly affected technology and growth stocks.
In China, the major indices, which were hesitant for most of the session, rose again after hitting their lowest level since mid-March: the Shanghai SSE Composite gained 0.66% and the CSI 300 0.8%.
The oil market is taking another hit on the prospect of higher rates and fears of weak Chinese demand. It should be down about 4% for the week.
Read also > STOCK MARKET : CHINA SENDS OIL MARKETS PLUNGING
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European stock markets are expected to decline on Friday, following Wall Street and Tokyo.
According to Federal Reserve Chairman Jerome Powell, the scenario of a half-point rate hike in early May and a series of additional hikes thereafter is likely to occur.
Index futures suggest a decline of 1.82% for the CAC 40 in Paris, 1.44% for the Dax in Frankfurt, 1.22% for the FTSE 100 in London and 1.71% for the EuroStoxx 50.
A 50 basis point increase in the federal funds rate target will be “on the table” at the May 3 and 4 monetary policy meeting, explained Jerome Powell on Thursday after the close of European markets. He is considering the scenario favored by the markets, i.e. a series of half-percentage point hikes in the coming months.
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European stock markets are expected to decline on Friday, following Wall Street and Tokyo.
According to Federal Reserve Chairman Jerome Powell, the scenario of a half-point rate hike in early May and a series of additional hikes thereafter is likely to occur.
Index futures suggest a decline of 1.82% for the CAC 40 in Paris, 1.44% for the Dax in Frankfurt, 1.22% for the FTSE 100 in London and 1.71% for the EuroStoxx 50.
A 50 basis point increase in the federal funds rate target will be “on the table” at the May 3 and 4 monetary policy meeting, explained Jerome Powell on Thursday after the close of European markets. He is considering the scenario favored by the markets, i.e. a series of half-percentage point hikes in the coming months.
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