EU stocks start lower on Fed rate hike talk
On Thursday, European stocks started abruptly lower, as renewed expectations for a June rate increase by the Fed weighed on the equity markets worldwide, while dropping oil also impacted the energy sector.
In the morning European trade, the EURO STOXX 50 slumped 0.96%, French CAC 40 dipped 0.83%, and German DAX 30 sank 1.19%.
Equity markets were affected after the recently issued Fed’s minutes unveiled the bank’s readiness to increase interest rates in June.
Separately, crude prices dipped abruptly after Wednesday’s data indicated that last week American stockpiles ascended suddenly.
Energy-related stocks traded lower because French gas and oil major Total SA decreased 1.49%, Italian ENI tumbled 1.76% and Norwegian Statoil ASA sank 1.45%.
As for financial stocks, they traded lower too. For instance, French lenders Societe Generale and BNP Paribas sank 0.21% and 0.49% respectively, while German Commerzbank and Deutsche Bank lost 0.31% and 0.21% respectively.