European markets fell sharply at the open on Thursday as hawkish comments from the US Federal Reserve and expected rate increases from the Bank of England and the European Central Bank hit investor sentiment.
The pan-regional Stoxx 600 index was down 1.12% at 0840 GMT. The Fed on Wednesday raised interest rates by half a percentage point after delivering four consecutive 75 bps hikes, but signalled more increases in borrowing costs by the end of 2023.
“I wish there were a completely painless way to restore price stability,” said the central bank’s chair Jerome Powell. “There isn’t, and this is the best we can do.”
US and Asian markets both fell on the news and Powell’s downbeat remarks. To add to the gloom, a China data dump for November showed worsening conditions due to strict Covid 19-related curbs.
In equity news, shares in fashion chain H&M fell despite a better than expected fourth quarter.
Reporting by Frank Prenesti for Sharecast.com
