European stock markets continued to lose ground on Wednesday as investors assessed the latest data on inflation on both sides of the Atlantic shortly before the monetary policy decisions of the European Central Bank.
Data released yesterday in the US showed a new jump in annual inflation to 8.5% in March. This is the highest level since 1981 with analysts no longer ruling out a 50 basis point increase in US interest rates at the next Federal Reserve meeting.
In the United Kingdom, inflation climbed to a 30-year high of 7% in March, boosted by the relentless rally in energy and food prices. Analysts’ average estimates in a Reuters poll put inflation at 6.7%.
Meanwhile, the New Zealand central bank today raised its interest rate by 50 basis points, following three rate hikes of 25 basis points. each time. This was the largest increase in over 20 years.
Investors expect the European Central Bank to keep interest rates unchanged and confirm that it plans to complete bond purchases in the third quarter of the year to pave the way for an increase before the end of 2022 and in the Eurozone, inflation has climbed to record levels.
On the board, the pan-European Stoxx 600 index fell 0.4% to 454.82 points.
The German DAX is down 0.9% at 14,001.78 points, the French CAC 40 is losing 0.5% at 6,505.03 points, while the British FTSE 100 is moving with small losses of 0.05% at 7,574.12 points.
In the periphery, the Italian FTSE MIB loses 0.3%, while the Spanish IBEX 35 has marginal gains.
Source: Capital
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