European Markets Frightened Over Fed’s Tightening
Major European stock markets are moving in negative zone as anxiety over the Fed’s inflation-combat strategies eclipsed the optimism generated by the earnings updates. The DAX, FTSE-100 and the pan-European Stoxx 600 are a tad below the flatline. The Swiss benchmark SMI is down more than a quarter percent whereas the French benchmark is worse-off with a decline of more than half a percent.
U.K.’s FTSE 100 is 0.07 percent below the previous closing level of 7551.72. It is currently trading at 7546.11. In the 101-scrip index, 39 scrips are in positive territory.
France’s CAC 40 opened at 7215.48 but dipped to low of 7191.99 before recovering to a high of 7221.71. The index’s current level of 7196.96 is 0.56 percent below the previous close of 7237.19. Of the 40 scrips in the index, 19 are trading above Wednesday’s levels.
Germany’s DAX is currently trading at 16020.21, after declining 0.04 percent from Wednesday’s close. 21 of the 40 scrips have gained since previous close.
Switzerland’s Stock Market Index is also down from previous close and is currently trading at 12631.62 after losing 0.31 percent.
The pan-European Stoxx 600 too declined by 0.04 percent from previous close and is currently trading at 486.01.
The EURUSD pair is currently hovering near 1.1462 whereas the GBPUSD pair is near 1.3745.
On Wednesday, most of the European markets had recovered smartly after the release of the inflation numbers in the U.S which came in along expected lines. The pan European Stoxx 600 advanced 0.65 percent. The U.K.’s FTSE 100 gained 0.81 percent, Germany’s DAX ended 0.43 percent up and France’s CAC 40 climbed 0.75 percent, while Switzerland’s SMI shed 0.31 percent.
Likewise, Wall Street did not witness further sell-off as the inflation reading though high, came in along expected lines. Nasdaq-100 rallied 0.38 percent on Wednesday to close at 15,905.10, whereas Dow Jones Industrial Average moved up a more modest 0.11 percent to end at 36,290.32.
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