Star Metro - Eurozone equities bounce from Fed-induced sell-off

NYSE - LSE

RYCEF	3.55%	20	$
RBGPF	-2.47%	68.3	$
BP	-1.88%	44.58	$
BTI	-0.34%	55.83	$
RIO	-0.69%	97.37	$
GSK	-1.67%	50.22	$
CMSC	0.19%	20.71	$
RELX	-2.9%	33.41	$
AZN	-0.04%	166.08	$
VOD	-3.36%	16.95	$
BCE	-1%	22.06	$
JRI	-0.52%	11.55	$
BCC	0.21%	75.69	$
CMSD	0%	20.45	$
NGG	-1.04%	76.8	$

Eurozone equities bounce from Fed-induced sell-off

ECONOMY 30.08.2022

Eurozone equities bounce from Fed-induced sell-off / Photo: MOHD RASFAN - AFP

Eurozone stocks rebounded Tuesday from recent losses, but London gains were capped as investors played catch-up after a long weekend.

Text size:

In midday deals, Frankfurt equities jumped 1.9 percent ahead of key German inflation data and Paris won 1.2 percent.

Both markets had slumped Monday as traders digested Federal Reserve chief Jerome Powell's warning of more interest rate hikes to fight runaway inflation.

London eked out gains on Tuesday after a public holiday closure the day before, while the euro held above one dollar.

Sentiment had soured late Friday after Powell indicated more monetary tightening was needed to bring inflation down from four-decade highs, news that sent Wall Street into a tailspin.

- Positive note -

"European markets have started the week on a positive note following Friday's sell-off on Wall Street after Powell struck a hawkish tone," said Interactive Investor analyst Victoria Scholar on Tuesday.

"US futures are pointing to a bounce back, as markets look set to regain some lost ground."

German inflation data is expected to show how the ongoing energy crisis has further stoked price pressures in the eurozone's powerhouse economy.

Natural gas prices however dipped Tuesday despite jitters over supply disruptions from key producer Russia.

Europe's benchmark Dutch TTF gas contract slid to 259.405 euros per megawatt hour, having stuck a March peak late on Friday.

French energy firm Engie said Tuesday that Russian energy giant Gazprom was slashing its natural gas deliveries "due to a disagreement between both sides over the execution of contracts".

Engie added in a statement that Russian gas supplies had already been reduced drastically after Russia invaded Ukraine in February.

Many European countries are facing severe supply problems as Moscow turns off the gas taps in response to EU military and diplomatic backing for Ukraine.

Asian stocks indices diverged on Tuesday, winning limited support from bargain-buying.

Confidence remains at a premium as traders contemplate the prospect of more Fed rate hikes and a possible recession.

Oil tanked Tuesday on fears about a major hit to demand from any global economic slowdown -- and news of more Covid restrictions in key consumer China.

- Key figures at around 1100 GMT -

London - FTSE 100: UP 0.1 percent at 7,435.36 points

Frankfurt - DAX: UP 1.9 percent at 13,141.45

Paris - CAC 40: UP 1.2 percent at 6,298.71

EURO STOXX 50: UP 1.5 percent at 3,622.75

Tokyo - Nikkei 225: UP 1.1 percent at 28,195.58 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 19,949.03 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,227.22 (close)

New York - Dow: DOWN 0.6 percent at 32,098.99 (close)

Euro/dollar: UP at $1.0034 from $0.9972 on Monday

Pound/dollar: UP at $1.1736 from $1.1709

Euro/pound: UP at 85.50 pence from 85.38 pence

Dollar/yen: DOWN at 138.34 yen from 138.68 yen

West Texas Intermediate: DOWN 1.8 percent at $95.23 per barrel

Brent North Sea crude: DOWN 2.4 percent at $102.53 per barrel

burs/rfj/jj

P.M.Martin--SMC

Featured

Asia stocks rise on AI, US-China trade talks optimism

Asian stock markets mostly rose on Monday morning, boosted by global demand for artificial intelligence technology and positive signals from trade talks over the weekend between Chinese and US officials.

US seeks 'AI dialogue' with China as officials set stage for Trump-Xi summit

US and Chinese economic officials discussed creating a communication channel for AI concerns at meetings Sunday as they set the stage for a summit of the countries' top leaders this week.

EB5 United's Cormont at Deer Valley East Village Achieves $224.8 Million Target EB-5 Raise; Offering Remains Open Toward $524.8 Million Maximum Raise

EB5 United's Cormont at Deer Valley East Village, an I-956F-approved Priority Processing Rural EB-5 project, has achieved its $224.8 million Target EB-5 Raise. Reaching the Target Raise locks the EB-5 loan into the senior position for every participating investor.

France's Macron, Canada's Carney announce closer ties

French President Emmanuel Macron and Canada's Prime Minister Mark Carney announced closer ties Sunday, speaking from France's tiny territory of Saint Pierre and Miquelon, just off Canada's Atlantic coast.