Losses in the Eurozone with inflation worries back in the spotlight

European stock markets are moving negatively on Friday, following the losses in the US and Asia as some aggressive statements by Federal Reserve executives on inflation have rekindled speculation that the central bank will soon launch its 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 at a hearing in Congress that inflation is very high and reducing it is a key priority for 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 dashboard, the pan-European Stoxx 600 fell 0.8% to 482.19 points.

The German DAX is down 0.6% at 15,934.82 points, the French CAC-40 is down 0.9% at 7,135.61 points, while the British FTSE 100 is down 0.3% at 7,543.16 points.

In the region, the Italian FTSE MIB loses 0.8%, while the Spanish IBEX 35 falls 0.7%.

In business developments, the German giant SAP climbed 1.9% after the announcement of the business software company that the revenues from the activities of the cloud computing jumped 28%.

In contrast, the French energy company EDF plummeted 23% after the French government decided to order the state-owned company to sell to smaller competitors part of the cheaper nuclear power it produces to limit increases in electricity prices.

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.