European stocks fell on Friday following a slide in the Asian stock market, as traders appreciated signs of high and sustained inflation in the United States and the imminent prospect of monetary tightening.
The regional STOXX 600 Europe index fell 0.8% in early trading. London’s FTSE 100 fell 0.4%. In Hong Kong, the Hang Seng index fell 0.3%, while the Japanese Nikkei 225 fell 1.3%.
Inflation on Wednesday is 7% per year at US consumer prices. December – The fastest pace in nearly 40 years. Another data released Thursday showed that wholesale prices in the United States rose at an annual rate of 9.7% in December.
Lael Brainard, US President Joe Biden’s Federal Reserve vice-presidential nominee, said at the confirmation hearing “We are taking action on monetary policy that we are confident will bring inflation down.” he said later Thursday.
Thursday’s session of Wall Street Stocks fell sharply. S&P Utilities and the Consumer Staples sector were the only two leaders, a sign that traders were retreating from assets perceived as high risk and shifting to investments with more defensive characteristics.
Traders say the US central bank will raise these interest rates to around 1% in 2022 by quadrupling the cost of borrowing, which affects interest rates around the world, after bringing these rates down close to zero in the spring of 2020. I can’t wait to be there.
In the government debt market, yields on 10-year US Treasuries, which are inversely proportional to prices, were flat at 1.71% on Friday. 2-year government bond yields, which closely track interest rate expectations, were added 0.02 percentage points to 0.92%.
The 10-year German Bund yield fell 0.02 percentage points to minus 0.1%. On the currency side, the dollar index, which measures currencies against six other currencies, fell 0.1% on Friday.
Moscow’s benchmark stock index on the Moscow Stock Exchange rose about 2% this week, although it rose on Friday to show that geopolitical tensions in Russia are beginning to permeate financial markets.
On the commodity side, the price of Brent, an oil benchmark, rose 0.4% on Friday to 84.42 dollars.
European stocks slide after Wall Street declines Source link European stocks slide after Wall Street declines