European stocks set to fall as hawkish Fed remarks dent global sentiment | Live Index
European stocks set to fall as hawkish Fed remarks dent global sentiment
Fri Jan 14 2022
Lucy Harlow (3877 articles)

European stocks set to fall as hawkish Fed remarks dent global sentiment

Britain’s FTSE 100 is seen around 28 points lower at 7,536, Germany’s DAX is expected to drop around 92 points to 15,940 and France’s CAC 40 is set to fall by around 42 points to 7,159, according to IG data.

Several Federal Reserve policymakers on Thursday signaled that they could be prepared to begin raising U.S. interest rates in March, with inflation now running at 7%. The rate rose at its fastest 12-month pace in nearly 40 years in December.

Expectations for higher rates — which make future cash flows look less attractive — have led to a choppy start to 2022 for global markets.

It’s a big day for Wall Street earnings on Friday, with JPMorgan, Citigroup, BlackRock and Wells Fargo all reporting fourth-quarter results.

Investors also have an eye on the unfolding geopolitical situation surrounding Ukraine, after Russia poured cold water on talks with NATO members, prompting U.S. diplomatic official Michael Carpenter to say that “the drumbeat of war is sounding loud and the rhetoric has gotten rather shrill.”

In corporate news, German software group SAP on Thursday reported a 28% jump in fourth-quarter revenue for its cloud computing business, while French state-owned utility EDF has been ordered by the government to sell more of its cheap nuclear power to smaller rivals in order to curb electricity price rises.

On the data front, Germany releases its preliminary full-year GDP growth figures on Friday morning, while French and Spanish consumer price inflation figures for December are also due.

Tags CAC, DAX, FTSE
Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe