European stocks retreat from record highs with release of Fed minutes

The actions europeans retreated from record highs this Thursday (6), as signs of a tough stance against inflation in the minutes of the December meeting of the Federal Reserve affected technology papers with the prospect of higher interest rates.

The pan-European STOXX 600 index closed down 1.25% to 488.16 points, erasing all gains recorded in a rally that took it to record highs in the first three sessions of the year.

On Wednesday (5), the minutes of the US central bank showed that the tight labor market and the inflation Relentless may require the Fed to raise interest rates sooner than expected and start reducing its overall asset portfolio.

European shares of technology were among the biggest losses in the region, falling 2.4% as higher interest prospects make future corporate earnings look less attractive.

“There is potential for more volatility earlier in the year, and the Fed minutes fueled that volatility, but it’s not indicative of a sudden, negative shift in investor sentiment,” said Craig Erlam, senior market analyst at OANDA.

the roles of banks e insurers were the only ones to advance on the day, with increases of 1.1% and 0.2% respectively. Sectors benefit from improved margins due to higher lending rates.

In London, the Financial Times index retreated 0.88%, to 7,450.37 points. In Ffrankfurt, the DAX index dropped 1.35% to 16,052.03 points.

The CAC-40 index, in Paris, lost 1.72%, to 7,249.66 points, while the Ftse/Mib index, in Milan, had a devaluation of 1.80%, to 27,655.69 points

In Madrid, the Ibex-35 index dropped 0.01% to 8,789.90 points. In Lisbon, the PSI20 index devalued by 1.00%, to 5,595.94 points.