Home » European markets slide 1.8% as investors digest more interest rate hikes

European markets slide 1.8% as investors digest more interest rate hikes

by WorldFinance
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European stocks closed lower Thursday, as investors digested news from the U.S. Federal Reserve, Swiss central bank, and Bank of England as they opted to hike rates.

The pan-European Stoxx 600 closed down 1.8% with all sectors and major bourses in negative territory except banks and basic resources, which were flat.

Technology and travel stocks were trading at the bottom of the Stoxx 600, falling 4.24% and 3.2%, respectively.

The Fed implemented a third consecutive 0.75 percentage point rate hike Wednesday, with policymakers pledging to continue raising rates as high as 4.6% in 2023 before pulling back in the fight against inflation.

Meanwhile, the Swiss National Bank on Thursday raised its benchmark interest rate to 0.5%, a shift that brings an end to an era of negative rates in Europe. The Bank of England also hiked rates, its seventh consecutive increase with a 50 basis point rise.

Europe stocks close lower after central bank hikes

European stocks ended the day lower after central banks in Switzerland and the U.K. announced interest rate hikes.

The Stoxx 600 closed down 1.8% with all sectors in the red except banks and basic resources, which were flat.

The British pound fell to a fresh 37-low against the dollar, hitting $1.125 at 5 p.m. London, as the Bank of England said the country was likely already in a recession.

 

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