- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
- Cuts, cash, credit: China bids to jumpstart flagging economy
- France's debt weighs heavier ahead of budget debate
- Iran treads carefully, backing Hezbollah while avoiding war
- Return to sender: waste stranded at sea stirs toxic dispute
- 'Broken' news industry faces uncertain future
- On remote Greek island, migratory birds offer climate clues
- Taken from mother by nuns, victim seeks answers as pope visits Belgium
- China cuts amount banks hold in reserve to boost lending
- Hong Kong, Shanghai extend surge as China optimism boosts markets
- Vietnam president reiterates support for Cuba during official visit
- Drought reduces Amazon River in Colombia by as much as 90%: report
- Stay or go? Pacific Islanders face climate's grim choice
- Florida bracing for 'unsurvivable' Hurricane Helene
- Poverty rises to over 52 percent in Milei's Argentina
- Chloe's see-through look may not be for Kamala Harris
NGG | -0.06% | 69.69 | $ | |
BP | 0.51% | 31.58 | $ | |
SCS | 1.47% | 13.346 | $ | |
BTI | -0.88% | 36.52 | $ | |
CMSC | -0.21% | 24.72 | $ | |
GSK | -0.06% | 40.685 | $ | |
RYCEF | -0.14% | 7.03 | $ | |
BCC | 0.19% | 141.76 | $ | |
RIO | -0.22% | 71.075 | $ | |
BCE | -0.43% | 35.04 | $ | |
JRI | 0.42% | 13.637 | $ | |
RBGPF | 7.18% | 64.75 | $ | |
AZN | -0.05% | 77.585 | $ | |
VOD | -0.4% | 10.05 | $ | |
CMSD | -0.28% | 25.011 | $ | |
RELX | -1.07% | 47.055 | $ |
Stocks wilt as investors brace for US Fed tightening
US and European stocks retreated Thursday after minutes from central banks showed US policymakers ready to aggressively wind back easy-money policies while their eurozone counterparts disagreed over their own way forward.
Meanwhile, oil prices continued to slide following heavy losses on Wednesday that had been triggered by concerns about weaker demand because of economic slowdown, with Brent crude falling below $100 per barrel.
A surge of Covid cases in major consumer China has raised concerns about demand, as has the surge in prices following the Russian invasion of Ukraine and Western sanctions.
On Wall Street all three major stock indices were lower in late morning trading, with Dow dropping 0.7 percent.
In Europe, London and Frankfurt ended the day down 0.5 percent, while Paris shed 0.6 percent.
Minutes showed the Fed in March opted to raise US borrowing costs rates by a quarter percentage point, mindful of "greater near-term uncertainty associated with Russia's invasion of Ukraine".
But some policymakers had favoured lifting rates even higher, by half a percentage point, to rein in decades-high inflation which is threatening to derail the economic recovery.
"Last night’s Fed minutes have recommitted the central bank to its path of tightening policy, leaving equities vulnerable in the short term after the bounce from the March lows," said Chris Beauchamp, chief market analyst at online trading platform IG.
- Inflation fight -
At their own meeting last month, European Central Bank policymakers disagreed on how to respond to runaway inflation and economic uncertainty caused by Russia's invasion of Ukraine, minutes indicated Thursday.
"A large number of members held the view that the current high level of inflation and its persistence called for immediate further steps towards monetary policy normalisation," the minutes read.
The ECB's governing council played it safe at the March meeting, agreeing to wind down monthly bond purchases at an accelerated pace in the second quarter, while keeping the end date of the stimulus scheme flexible.
An interest rate hike would follow "some time" after the end of the bond-buying scheme, it said.
But the minutes revealed that some governors wanted to go further to combat inflation, as the war in Ukraine further pushes up prices for energy, food and raw materials.
The prospect of rates rising at a quicker pace over the coming months has added to a wave of uncertainty across trading floors.
Central banks across the world are under fierce pressure to tackle runaway inflation, which has soared further on a Ukraine-driven spike in commodities like gas, oil and wheat.
March was the first Fed hike since it slashed US rates to zero when the Covid-19 pandemic broke out two years ago.
Although current US data points to a healthy economy, commentators warn of possible hard times ahead.
"While the economy continues to grow, there is a clear lack of bullish momentum in this market at the moment," said IG's Beauchamp.
- Key figures around 1530 GMT -
New York - Dow: DOWN 0.7 percent at 34,240.39 points
EURO STOXX 50: DOWN 0.6 percent at 3,802.10
London - FTSE 100: DOWN 0.5 percent at 7,551.81 (close)
Frankfurt - DAX: UP DOWN 0.5 percent at 14,078.15 (close)
Paris - CAC 40: DOWN 0.6 percent at 6,461.68 (close)
Tokyo - Nikkei 225: DOWN 1.7 percent at 26,888.57 (close)
Hong Kong - Hang Seng Index: DOWN 1.2 percent at 21,808.98 (close)
Shanghai - Composite: DOWN 1.4 percent at 3,236.70 (close)
Brent North Sea crude: DOWN 2.3 percent at $98.73 per barrel
West Texas Intermediate: DOWN 2.1 percent at $94.23 per barrel
Euro/dollar: UP at $1.0903 from $1.0896 late Wednesday
Pound/dollar: DOWN at $1.3063 from $1.3069
Euro/pound: UP at 83.46 pence from 83.37 pence
Dollar/yen: UP at 123.87 yen from 123.80 yen
burs-rl/cdw
O.Hansen--CPN