Europe reluctant to wait for Fed announcements
Major European markets ended mixed on Monday, with the Stoxx 600 index – a benchmark of the bloc – down 0.09%.
The real estate sector lost the most (-1.36%), followed by the automotive sector (-0.74%) and gas and oil (-0.56%).
Thus, the Stoxx 600 index remained with little fluctuation, after last week it recorded the largest weekly decline in three months – as a result of the release of inflation data in the United States, which was higher than expected. Now, investors are waiting for the US Federal Reserve meeting and the announcement of an interest rate hike.
By national indices, Germany’s Dax is up 0.49%, Spain’s IBEX 35 is up 0.11%, Italy’s FTSEMIB is up 0.14%, and in Amsterdam the AEX is up 0.09%. In the opposite direction were the French CAC-40, which lost 0.26%, and the Portuguese PSI, which lost 0.11%.
Britain’s FTSE 100 is not trading due to the closure of the stock exchange on the day of the Queen’s funeral.
Economists believe the Fed will raise interest rates by 75 basis points on Wednesday to combat rising inflation.
This pessimistic atmosphere was exacerbated by the Bundesbank’s comments, which indicated there were increasing signs of a recession approaching in Germany.
“This week we will all focus on the Federal Reserve. My forecast is 75 basis points. If it goes up to 100, the market will react very badly, because it means that inflation is worse than expected. For the results season,” Alfonso Benito, of Dunas Capital, told Bloomberg.
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