Tuesday, January 18, 2022

UPDATE 2 – European shares fell 1% with the Fed’s brutal signals

Must Read

Why Terry Smith chooses quality instead of cheap valuable stocks for Fundsmith

Star Trek: Terry Smith has won fans among investors for his...

A shooting for an unpaid drink bill at a Miami bar has left four people injured and a gunman killed: police

A man who was kicked out of a bar in Miami on Monday night returned and opened fire...

Robbie Williams said he will “hopefully” go on tour in 2022

Robbie Williams hopes to hit the road again later this year. Former Take this singer's 11th solo album, "Heavy...


(For a live blog in the US, UK and European stock markets, click LIVE / or type LIVE in the news window)

* STOXX 600 breaks New Year’s record

* Technical stocks look at the worst day of the month

* Traders increase bets to increase ECB rate (Add comment, update prices)

January 6 () – European stocks fell more than 1% on Thursday as alarming signals in the U.S. Federal Reserve’s policy meeting minutes in December eased sentiment among global investors and sparked tensions in technology stocks.

The Pan-European STOXX 600 index lost 1.1% and decided to close most of the gains made at the rally, which led to record highs in the first three sessions of the year.

On Wednesday, Fed protocols showed a tight labor market, and persistent inflation could force the U.S. Federal Reserve to raise interest rates faster than expected and begin to shrink its total assets.

The Wall Street index fell sharply overnight, while the technologically heavy Nasdaq fell more than 3 percent as rising rates threaten to devalue the future earnings of high-growth companies.

All sectors of Europe were in negative territory, with technology losing the most, falling 2.6% to its worst session in a month.

OANDA senior market analyst Craig Erlam said: “There is more probability of volatility at the beginning of the year and the Fed minutes have provided that volatility, but it doesn’t show a sharp, negative change in investor sentiment.”

“I think it’s a technological waste,” he said. “Even if it lasts a day, two days, three days, I don’t think it will have a lasting effect.”

After European stocks hit new peaks at the start of the new year, perhaps a faster downturn, COVID-19 restrictions and rising inflation are scaring investors ahead of the fourth-quarter earnings season.

Trading in money markets in the eurozone offered investors an increase in interest rates from the European Central Bank in early October and another in December.

In addition to the concern, a spokesman for the French government said that the “supersonic” growth of COVID-19 infection would continue in the coming days and that there were no signs of a reversal of the trend.

The good news for manufacturers, who are reportedly suffering from supply and labor problems, is that higher demand led to more than expected growth in German industrial orders in November.

Among the shares, Societe Generale’s car leasing division ALD rose 5% as the rental market agreed to buy rival LeasePlan for € 4.9 billion ($ 5.5 billion) as it switched to electric vehicles.

Carrefour rose 4.4 percent in the STOXX 600 rating after news of rival Auchan’s new offer for a French retailer. (Anisha Sirkar’s interview in Bangalore; edited by Shounak Dasgupta and Subhranshu Sahu)

.

- Advertisement -
Latest News

Why Terry Smith chooses quality instead of cheap valuable stocks for Fundsmith

Star Trek: Terry Smith has won fans among investors for his...

A shooting for an unpaid drink bill at a Miami bar has left four people injured and a gunman killed: police

A man who was kicked out of a bar in Miami on Monday night returned and opened fire on the establishment, injuring four...

Robbie Williams said he will “hopefully” go on tour in 2022

Robbie Williams hopes to hit the road again later this year. Former Take this singer's 11th solo album, "Heavy entertainment show", Arrived in 2016....

The championship title between Brock Lesnar and Roman Reigns was never planned

Roman Reigns and Brock Lesnar crossed the detour on WrestleMania. Roman was diagnosed with COVID-19 and had to miss a scheduled...

The owner of the Holiday Inn named the first female chair

() -IHG said on Tuesday that financial industry veteran Deanna Oppenheimer will be the first female chair owner of the Holiday Inn when...
- Advertisement -

More Articles Like This