Intense pressures in the European markets against the background of inflation

With losses exceeding 1%, the main European indices are moving at the end of the trading week, as the new escalation of inflation in the US shows that it will accelerate the increase of the Fed interest rates, giving a lead to the liquidations.

In particular, the pan-European Stoxx 600 index is moving with losses of 0.8% and is at 468.8 points, with the travel and leisure sector receiving the biggest pressures as it falls by 1.5%.

Elsewhere in Europe, the German DAX was down 0.8% at 15,368 points, the French CAC 40 was down 1% at 7,047 points and the British FTSE 100 was down 0.7% at 7,269 points. .

A similar climate prevails in the markets of the European region, where in Italy the FTSE MIB recorded losses of 1.2 %% moving to 26,849 units, as well as the Spanish IBEX 35 which falls to 8,792 units with a fall of 1%.

The jump to a new 40-year high in US inflation in January, moving to 7.5% on an annual basis and exceeding market estimates, initially seemed to be accepted with controlled reservations from the markets, but the climate was severely strained when officials The Fed spoke of the need for a more aggressive stance on interest rates.

In particular, the head of the Fed of St. Louis James James Bullard said that the data on inflation now make his stance “dramatically” more aggressive, with him stating that he hopes for an overall increase in bank interest rates by an entire percentage point in the first half of the year.

Although markets have recently shown interest rates, both from the Fed and the other major central banks around the world, the possibility of a stronger-than-expected intervention continues to be a cause for concern.

Elsewhere, on the macroeconomic front, the British economy moved at a faster pace than analysts had estimated in December, with the country’s GDP shrinking slightly by 0.2% against a forecast of 0.6%.

Finally, earlier today, the Asian indices also lost their trades, with the climate being equally affected by the data on US inflation and the dip recorded by the Wall Street index.