European shares edge higher after sharp losses in previous session

Shares in Europe rose on Wednesday, reversing some losses from the previous meeting after US Reserve officials detailed their willingness to raise interest rates aggressively to fight inflation.

The regional stock index Stoxx 600 added 0.6% thereafter Ends Wednesday A 1.5% drop, due to concerns from the European Central Bank following the tightening of the Fed’s rapid monetary policy combined with fears that sanctions against Russia could provoke rising consumer prices. German Dax added 0.4 percent, while London’s FTSE 100 lost 0.2 percent.

The yield on the 10-year Treasury bill, which decreases with the rise in the price of the instrument, fell by 0.03 percentage points to 2.58% after Intense sale Of U.S. government debt and the eurozone in the previous two sessions.

The yield on the two-year Treasury bill, which closely monitors interest rate expectations, fell 0.06 percentage points to 2.44%, remaining close to the highest point in more than three years.

These moves came later subtlety From the last meeting of the US Federal Reserve revealed that after it raised Its interest rate at 0.25 percentage points last month, “many” policymakers have seen one or more half-point increases properly if inflation remains high. The annual rate of U.S. consumer price increases soared in February to a 40-year high of 7.9 percent.

Nadège Dufossé, head of cross-asset strategy at Candriam Investment Manager, said trading on Thursday apparently showed “short-term relief” after markets “exceeded” the Fed minutes ago.

Treasury yields for shorter periods are expected to continue to rise, she added, while stock markets were expected to decline.

“There have been no big sales yet, but the next step for the stock markets could be more negative,” she said, as some investors see central bank rate hikes as likely to stifle economic growth.

Stoxx fell nearly 6 percent this year, but traded above its closing price on February 23, on the eve of Russia’s invasion of Ukraine. The Wall Street S&P 500 stock index, which futures trading suggests will fluctuate in New York early trades, is about 6% higher than its February 23 level.

Stock markets have found support from investors who have left the bonds, as inflation erodes payments with the fixed income of the instruments.

“There is a rotation towards high-quality dividend-paying stocks,” said Mubin Tahir, director of macroeconomic research at ETF WisdomTree, adding that companies can maintain profits by passing on price increases to customers.

Elsewhere, Germany’s 10-year yield fell by 0.01 percentage point to 0.64%.

Brent crude oil, the international oil index, added 0.8% to $ 101.89 a barrel. Oil prices fell on Wednesday after the International Energy Agency said Its members would exploit emergency reservoirs to cope with price pressures from additional potential bans on Russian crude oil imports.

In Asia, Hong Kong’s Hong Kong Stocks were down 1.2% and the Japanese Nikkei was down 1.6%, reflecting Wall Street falls of 1%. Session.

God The S&P 500 closed down 1 percent On Thursday, while the high-tech Nasdaq Composite dropped more than 2%.

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European shares edge higher after sharp losses in previous session Source link European shares edge higher after sharp losses in previous session

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