(CercleFinance.com) – European stock markets suffered sharp declines on Thursday (-0.8% in London, -0.7% in Frankfurt, -1.3% in Paris), still suffering from comments made the day before by Jerome Powell in front of the House of Representatives in Washington.
Investors do not appreciate the latest statements from the Chairman of the Federal Reserve, who made it clear that further rate hikes were to be expected this year, raising fears of a hard landing for the American economy.
‘Almost all the members of the monetary policy committee (FOMC) believe that it will be necessary to raise interest rates a little more by the end of the year’, he thus declared in front of US parliamentarians.
All eyes are now on the Bank of England, where the monetary policy committee must in turn deliver its verdict. “We expect a rise of 25 basis points to 4.75% on Thursday and another increase in August,” warns UBS.
After this mid-day meeting, operators will take note, in the middle of the afternoon, of the Conference Board’s leading indicators and sales of existing homes in the United States for the month of May.
In the meantime, on the securities front, SES stands out in Paris by winning 5%, after the Luxembourg satellite operator halted its discussions concerning a possible combination with its American competitor Intelsat.
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