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Monday, January 30, 2023
Stocks & Shares

European stocks lower on Fed rate hike concerns

stocks lower

The FTSE 100 lost 0.18% to 7,556, while the CAC retreated 0.29% to 6,677 points and the DAX slipped 0.28% to 14,406

The FTSE 100 and European stocks opened in the red in the wake of Wall Street’s overnight decline amid fears the Federal Reserve will hike interest rates for longer.

The FTSE 100 lost 0.18% to 7,556 at the open, while the CAC in Paris retreated 0.29% to 6,677 points. In Germany, the DAX slipped 0.28% to 14,406.

Solid figures from the world’s biggest economy have cooled speculation that policymakers might soften their approach on rates early next year.

Packaging group Mondi is leading the FTSE 100 fallers, down 4.45% at 1472.5p after Credit Suisse cut its rating from outperform to underperform and cut its price target from 1800p to 1600p.

Meanwhile, Brent crude has climbed to $83/barrel, as plummeting temperatures across Europe boost demand.

S&P 500 futures, Dow futures and Nasdaq futures were all muted as trade began in Europe.

In Asia, Tokyo’s Nikkei 225 gained 0.24% to finish at 27,885 while the Hang Seng in Hong Kong lost 0.76% to 19,369. The Shanghai Composite closed flat at 3,212 points.

On Wall Street, the Dow Jones slid 1.40% to 33,947. The S&P 500 lost 1.79% and finished at 3,998 points and the tech-heavy Nasdaq fell 1.93% to 11,239.

In the US, investors will also be looking at the last knockings of the Senate elections. Jim Reid at Deutsche Bank said: Today is an important one in US politics as the Georgia Senate run-off election takes place. This doesn’t have quite the significance it did two years ago, since the Democrats already have 50 seats and will control the Senate regardless of the result thanks to Vice President Harris’ casting vote.

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