(RTTNews) – European shares opened lower on Friday after Wall Street’s major indexes closed significantly lower overnight on interest rate concerns.
Asian markets traded lower as a stronger dollar and higher government bond yields hurt sentiment.
Two-year Treasury yields exceeded 5 percent, reflecting concerns that U.S. yields will remain higher for longer.
Atlanta Fed President Raphael Bostic said at an event in New Orleans that the current policy stance should be enough to curb inflationary pressures.
In addition, Richmond Fed Chairman Thomas Barkin predicted that an economic downturn would be necessary to achieve the Fed’s inflation targets.
Gold was on track for its worst week in more than a month, while oil prices rose but were set for a third weekly decline on easing tensions in the Middle East.
Israeli Prime Minister Benjamin Netanyahu said on Thursday that his country does not seek to conquer, occupy or rule Gaza after the war against Hamas, but that a civilian government must be formed in Gaza and that Israel will ensure that an attack such as that of October 7 will not take place. again.
In economic publications, investors are awaiting British GDP data as well as reports on industrial production and the trade balance after Huw Pill, chief economist at the Bank of England, said on Thursday that interest rates must remain at current levels to curb inflation.
Across the Atlantic, trading later in the day could be affected by a reaction to a November consumer confidence report, which includes figures on consumer inflation expectations.
US stocks fell overnight, while bond yields rose sharply after weak selling of 30-year notes. Fed Chairman Jerome Powell notes that the US central bank “will not hesitate” to resume interest rate cuts if it becomes appropriate.
Powell said inflation has slowed over the past year, but the process of sustainably returning inflation to 2 percent still has a long way to go.
The Dow Jones fell 0.7 percent, while the tech-heavy Nasdaq Composite lost 0.9 percent and the S&P 500 gave up 0.8 percent, posting their longest winning streak in two years.
European shares closed higher on Thursday after impressive earnings updates outweighed hawkish comments from Fed and ECB officials.
The pan-European STOXX 600 gained 0.8 percent. The German DAX rose 0.8 percent, the French CAC 40 rose 1.1 percent and the British FTSE 100 added 0.7 percent.
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