European stock markets are moving negatively on Friday, following the losses in the US and Asia as some aggressive statements by Federal Reserve and ECB executives on inflation have revived speculation that central banks will soon launch their policy tightening.
In statements on Thursday, several Fed officials appeared ready to start raising interest rates from March in order to address the price rally. Lael Brainard, President Biden’s choice for the second highest position in the Federal Reserve, said yesterday in Congress, at a hearing on her position, that inflation is very high and reducing it is a key priority of the central bank. The latest US inflation data showed an annual jump of 7% in December, the highest level in about 40 years.
On the board, the pan-European Stoxx 600 fell 0.6% to 483.16 points.
The German DAX loses 0.6% to 15,939.29 points, the French CAC-40 falls 0.7% to 7,151.19 points, while the British FTSE 100 moves with small losses of 0.1% to 7,555.29 points.
In the region, the Italian FTSE MIB lost 0.8%, while the Spanish IBEX 35 fell 0.7% after data showed that annual inflation climbed to 6.5% in December, the highest level since 1992.
European Central Bank Vice President Luis de Guidos said on Thursday that the jump in inflation in the Eurozone was not proving to be as temporary as expected, and warned that the rise in prices this year would exceed forecasts.
In business developments, the German giant SAP climbed 0.9% after the announcement of the business software company that the revenues from the activities of the cloud computing jumped 28%.
On the contrary, the French energy company EDF drops 21% following the decision of the French government to order the state-owned company to sell to smaller competitors a part of the cheaper nuclear energy it produces, in order to limit the increases in the prices of electricity.
Investors are waiting for the start of the corporate earnings period in the US with the banking giants JPMorgan, Citigroup, BlackRock and Wells Fargo announcing today their financial performance for the fourth quarter of the year.
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