European stocks set to slide after red hot U.S. inflation print, hawkish Fed comments
European markets are set to fall on Friday after a hotter-than-expected U.S. inflation print and hawkish remarks from a Federal Reserve official cemented expectations of more aggressive interest rate hikes.
Britain’s FTSE 100 is seen around 76 points lower at 7,596, Germany’s DAX is set to slide around 176 points to 15,314 and France’s CAC 40 is expected to fall by around 87 points to 7,015, according to IG data.
U.S. inflation came in at an annual 7.5% in January, fresh data revealed on Thursday, far ahead of expectations and marking the highest year-on-year rise in consumer prices since 1982.
Risk sentiment was then further dampened when St. Louis Fed President James Bullard, a member of the Fed’s rate-setting committee, acknowledged that the reading had rendered him “dramatically” more hawkish. Bullard said he’s now hoping for a full percentage point of interest rate rises in the first half of the year.
Shares in Asia-Pacific were mostly lower on Friday, with the exception of Japan’s Nikkei 225 and Topix indexes, while U.S. futures pointed sharply lower in early pre-market trade, indicating another rocky session on Wall Street after Thursday’s sell-off.
Earnings in Europe on Friday came from Lanxess and BAT before the bell, while key data releases included German inflation readings for January and December’s British GDP, industrial and services output readings.
