European markets slip after Fed signals rate hikes in 2023

Further, U.S. stock futures pointed to a further decline in Thursday’s trade.

Jun 17, 2021 05:06 IST India Infoline News Service

European stocks slipped after the global markets react to the Federal Reserve’s signal that rate hikes will come sooner than expected. The pan-European Stoxx 600 down, with utilities shedding to lead losses while banks bounced 2.4% on the prospect of future interest rate hikes.

Further, U.S. stock futures pointed to a further decline in Thursday’s trade.

Most sectors in Europe pulled back, though banks including HSBC Holdings and BNP Paribas BNP rose on the prospect for higher bond yields and better margins.

Meanwhile, Asian markets were mixed on Thursday after the U.S. Federal Reserve moved up its timeline for rate hikes. In Japan, the Nikkei 225 fell 0.93% while the Topix index dipped 0.75%, the S&P/ASX 200 in Australia fell 0.37% and South Korea’s Kospi declined 0.42%.

Fed Chair Jerome Powell said projections for future rate increases should be “taken with a big grain of salt” and reiterated that he believes that inflation is transitory.

Powell also did not issue guidance on when the central bank will begin tapering its bond-buying program.

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