European stocks extend losses as slowdown warnings weigh
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Loading... - Haven Bouma
- 16 Sep 2022
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European stocks dipped on Friday and Europe's benchmark German 10-year bond yield hit its highest since mid-June as investors braced for a U.S. rate hike while warnings from the World Bank and the International Monetary Fund fanned fears of a slowdown.
The World Bank's chief economist said on Thursday he was worried about a period of low growth and high inflation in the global economy. The International Monetary Fund said downside risks continue to dominate the global economic outlook but it is too early to say if there will be a widespread global recession.
Wall Street sold off on Thursday after U.S. economic data gave the Federal Reserve little reason to ease its aggressive rate-hike stance.
The downbeat tone continued during Asian trading, with data showing that China's property sector had contracted further last month.
As of 0815 GMT, the MSCI world equity index, which tracks shares in 47 countries, was down 0.5% on the day and set for its fourth consecutive day of losses.
Europe's STOXX 600 was down 1.2% (.STOXX) and London's FTSE 100 (.FTSE) edged 0.1% lower. Germany's DAX was down 1.8% (.GDAXI).
Markets priced in a 75% chance of a 75-basis-point rate hike and a 25% chance of 100 bps when the Fed meets next Wednesday. Read More...
