European Shares Set To Extend Losses As Powell's Comments Sap Risk Sentiment

RTTNews | 948天前
European Shares Set To Extend Losses As Powell's Comments Sap Risk Sentiment

(RTTNews) - European stocks look set to open lower on Monday, with worries about the Fed's aggressive rate hiking cycle and weakening growth prospects in China likely to keep underlying sentiment cautious.

The U.S. two-year treasury yield hit its highest in 15 years as markets priced in higher odds of a 75 bps Fed rate hike at the Sept. 20-21 policy meeting.

Yields climbed across Europe, with double digit gains seen in Italy, Spain and Portugal as investors priced in the risk that the European Central Bank could raise rates by 75 bps next month.

The dollar index scaled a 20-year high, making greenback-priced commodities and bullion expensive for those holding other currencies.

Oil prices continued to rise, with Brent prices and WTI crude futures both climbing over 1 percent amid speculation that OPEC+ could cut output at a meeting on Sept 5.

Asian markets followed Wall Street lower and U.S. stock futures tanked after data showed profits at industrial firms sank in July as a result of fresh COVID-19 curbs and power shortages due to heatwaves.

In the U.S., the Dow fell 3 percent on Friday, the S&P 500 plunged 3.4 percent and the tech-heavy Nasdaq Composite index lost 3.9 percent, as Fed Chair Powell reiterated the Fed's resolve to bring inflation back to its 2 percent target, arguing that a failure to restore price stability would mean "far greater pain."

He declared that the central bank would use its tools "forcefully" to tame inflation, which could mean slower growth, a weaker job market and "some pain" for households and businesses.

European stocks closed sharply lower Friday on the back of Powell's comments. The pan European Stoxx 600 fell 1.7 percent.

The German DAX lost 2.3 percent, France's CAC 40 index tumbled 1.7 percent and the U.K.'s FTSE 100 shed 0.7 percent.

read more
European Shares Tumble On Tariff Jitters

European Shares Tumble On Tariff Jitters

European stocks fell sharply on Thursday as investors fretted about the potential repercussions of the new tariffs announced by U.S. President Donald Trump.
RTTNews | 4小时47分钟前
Asian Shares Slide On Trade War Concerns

Asian Shares Slide On Trade War Concerns

Asian stocks tumbled on Thursday after U.S. President Donald Trump announced a 10 percent universal tariff on most imported goods along with additional high tariffs on countries the U.S. considers "worst offenders" based on trade deficits and non-tariff barriers.
RTTNews | 5小时9分钟前
DAX Down Sharply Despite Coming Off Early Lows

DAX Down Sharply Despite Coming Off Early Lows

German stocks are down sharply Thursday morning due to heavy selling almost across the board as investors react to the U.S. government's announcement of "reciprocal tariffs." The much steeper-than-expected tariffs on US trade partners, has heightened concerns over a global trade war that could destabilize major economies.
RTTNews | 5小时10分钟前
U.S. Dollar Drops Amid Fed Rate Cut Bets

U.S. Dollar Drops Amid Fed Rate Cut Bets

The U.S. dollar weakened against other major currencies in the European session on Thursday, as traders increase their bets that the Fed will lower rates in June, as Trump imposes fresh tariffs, traders increase their wagers that the Fed will lower rates in June.
RTTNews | 5小时14分钟前
Commodity Currency's Slide As Trump Unveils Tariff Plans

Commodity Currency's Slide As Trump Unveils Tariff Plans

The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Thursday, after U.S. President Donald Trump announced steeper-than-expected reciprocal tariffs on U.S. trade partners, heightening concerns over a global trade war that could destabilize major economies. White House press secretary Karoline Leavitt indicated the new levies will be "effective immediately."
RTTNews | 5小时24分钟前