After the Federal Reserve hinted that interest rates will continue to rise in the future, European equities hit their lowest level in a week.
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The Federal Reserve raised interest rates by 75 basis points for the fourth time
European equities hit a one-week low on Thursday, after the US Federal Reserve hinted at continued interest rate hikes going forward, thwarting hopes of easing its hawkish inflation reduction policy.
The European “Stoxx 600” index fell 0.9%, registering its worst daily performance in 4 weeks, as the technology and real estate sectors sensitive to changes in interest rates fell by 2.3% and 2, respectively. 9%.
While most of the major industry indices fell, banks and insurance companies maintained their earnings, growing 0.4% and 0.2% respectively.
AndThe Federal Reserve raised the interest rate For the fourth consecutive time of 75 basis points, yesterday, Wednesday, noting that “the maximum level of the reference interest rate could be higher than previously expected”.
However, Federal Reserve Chairman Jerome Powell said future hikes “may come in smaller sizes.”
European equity markets rose three out of four days this week before the Federal Reserve’s decision was announced, supported by better-than-expected earnings. However, economic data since then has provided further indications that the Eurozone is gradually sliding into recession.
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European travel and leisure shares fell 1.6%, with Filter Entertainment down 5.5%.
And “BMW” (BMW) lost 4.7%, after warning that the impact of rising inflation and interest rates on sales will begin in the coming months.
