Paris, Feb 11 (AFP\/APP):European stock markets opened lower on Friday following falls in Asia and Wall Street over fears the Federal Reserve will move more aggressively to tighten monetary policy to tame decades-high inflation.<\/p>\n
London’s FTSE 100 was down 0.7 percent at 7,617.19 points in opening deals even though official data showed the UK economy posting record 7.5 percent growth last year following the pandemic recession.<\/p>\n
The DAX index in Frankfurt shed 0.6 percent at 15,390.01 while the Paris CAC 40 dropped by 0.9 percent at 7,037.25 points.<\/p>\n
The 7.5 percent jump in US consumer prices last month was the fastest in 40 years and reinforced fears that the central bank is falling behind the curve in keeping inflation under control.<\/p>\n
Comments from Fed official James Bullard further raised investor concerns as he said he was in favour of a 50 basis point interest rate lift next month — double the usual rise and the first since 2000 — and two more after that.<\/p>\n
“The Fed hawks came back in charge aggressively following the US inflation print as St Louis (Fed) President Bullard said he’d ‘like to see 100 basis points in the bag by July 1’,” said Swissquote senior analyst Ipek Ozkardeskaya.<\/p>\n
“We went from no rate hike in 2022 to the growing possibility of a 100bp hike by July — which also implies that the first rate hike in March would be no tinier than 50bp,” she said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Paris, Feb 11 (AFP\/APP):European stock markets opened lower on Friday following falls in Asia and Wall Street over fears the Federal Reserve will move more aggressively to tighten monetary policy to tame decades-high inflation. London’s FTSE 100 was down 0.7 percent at 7,617.19 points in […]<\/p>\n
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