The stock indices in Western Europe are changing weakly and multidirectionally during the trading on Thursday.
The Stoxx Europe 600 composite index of the largest companies in the region was down 0.16% to 435.51 points by 11:29 a.m.
Germany’s DAX stock index rose 0.01%, France’s CAC 40 rose 0.14%, the British FTSE 100 declined 0.08%, Italy’s FTSE MIB and Spain’s IBEX 35 lost 0.19% and 0.18% respectively.
Investors continue to fear the effects of the slowing world economy and further tightening of the monetary policy of major central banks to curb inflation, writes Trading Economics.
The Federal Reserve (Fed) and the European Central Bank (ECB) are expected to raise key rates again next week to combat inflation, which is still at too high levels.
The Fed is expected to slow the pace of key interest rate hikes to 50 basis points from 75 bps. Analysts expect the ECB to raise rates by 50 bps as well.
Investors, already concerned about the tightening of monetary policy of the Federal Reserve, should prepare themselves for the fact that U.S. interest rates will continue to rise until May 2023, believes chief economist of Goldman Sachs Jan Hatsius. Expect a decline in borrowing costs next year, in his view, it’s not worth it, The Wall Street Journal reported.
The most significant decline in the Stoxx 600 Index is in shares of Swiss locomotive and railcar maker Stadler Rail AG, which are down 4.5%.
Aroundtown S.A., a real estate company, is showing the strongest gains. – up 7.2%.
Shares of Ryanair Holdings PLC are up 1.4%. The Irish low-cost carrier extended its contract with chief executive Michael O’Leary through July 2028.
