European Stocks Jump Before Rate Decisions
Faizan Hashmi Published February 02, 2023 | 06:30 PM
European stock markets rallied Thursday before interest rate decisions from the European Central Bank and Bank of England and following the US Federal Reserve's latest hike aimed at cooling sky-high inflation
London, (UrduPoint / Pakistan Point News - 2nd Feb, 2023 ):European stock markets rallied Thursday before interest rate decisions from the European Central Bank and Bank of England and following the US Federal Reserve's latest hike aimed at cooling sky-high inflation.
Asia's main equity indices closed mixed, with investors unable to maintain an early rally, despite a strong lead Wednesday from Wall Street fuelled by hopes the Fed's campaign of interest rate hikes could be nearing an end.
"European stocks rose in early trade following the (Fed) decision but with the European Central Bank and Bank of England later there is no let up," said Neil Wilson, chief market analyst at Finalto trading group.
Equities were solidly higher also following well-received earnings, including record profits from British energy giant Shell and sales dropping less than expected at Meta, owner of Facebook and Instagram.
Tech firms led a surge on the Nasdaq and S&P 500 indices Wednesday after the US central bank unveiled its forecast quarter-point increase in borrowing costs -- but also noted progress in bringing prices under control.
While Fed chair Jerome Powell warned officials would need "substantially more evidence" to be confident that inflation is on a sustained downward path, analysts said he appeared unmoved by market expectations for a lower "terminal rate".
The decision to lift rates by the smallest amount in almost a year came after a series of data points suggested the world's top economy was slowing down, with US inflation at its lowest level since October 2021.
The broadly dovish turn from the Fed provided a fillip to investors, who had grown concerned that January's rally for stock markets may have been overdone and that the rate hikes would continue for well into the year.
- More Adani pain - Thursday saw another hefty sell-off in Indian tycoon Gautam Adani's empire, with trading in flagship firm Adani Enterprises and five others suspended after they lost 10 percent.
Adani Enterprises had plunged nearly 30 percent Wednesday.
The losses came after the group cancelled a multi-billion-dollar stock sale in reaction to the across-the-board collapse.
Adani's empire has lost more than $100 billion following explosive allegations of accounting fraud last week by US short-seller Hindenburg Research that the firm has rejected.
- Key figures around 1115 GMT - London - FTSE 100: UP 0.6 percent at 7,805.60 points Frankfurt - DAX: UP 1.5 percent at 15,407.70 Paris - CAC 40: UP 0.6 percent at 7,119.24 EURO STOXX 50: UP 1.1 percent at 4,218.01 Tokyo - Nikkei 225: UP 0.2 percent at 27,402.05 (close) Hong Kong - Hang Seng Index: DOWN 0.5 percent at 21,958.36 (close) Shanghai - Composite: FLAT at 3,285.67 (close) New York - Dow: UP less than 0.1 percent at 34,092.96 (close) Euro/dollar: DOWN at $1.0989 from $1.0995 on Wednesday Pound/dollar: DOWN at $1.2325 from $1.2378 Euro/pound: UP at 89.16 pence from 88.76 pence Dollar/yen: DOWN at 128.76 yen from 128.90 yenWest Texas Intermediate: DOWN 0.1 percent at $76.36 per barrelBrent North Sea crude: DOWN 0.2 percent at $82.64 per barrel
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