The European stock markets retreat, continuing on a negative trajectory for the fourth consecutive session, in the climate of concern that has formed recently about the possibility that the central banks in their effort to deal with the inflation rally could lead their economies into recession.
Minneapolis Fed President Neel Kashkari on Tuesday reaffirmed the central bank’s determination to rein in inflation, underscoring his concern about the risk of “destabilizing inflation expectations.”
If that happens, the Fed will likely have to launch very aggressive rate hikes to restore balance, he warned.
His remarks come shortly before Federal Reserve Chairman Jerome Powell’s much-anticipated speech on Friday at the bank’s annual economic symposium in Jackson Hole, Wyoming.
In Europe, investors are awaiting the release of minutes from the European Central Bank’s latest monetary policy meeting for more clues on the bank’s next moves.
On the board, the pan-European Stoxx 600 lost 0.05% to 431.12 points.
Germany’s DAX edged down 0.05% to 13,186.22 points, France’s CAC 40 gained 0.03% to 6,363.81 points, while Britain’s FTSE 100 lost 0.2% to 7,475.90 points.
In the region, Italy’s FTSE MIB is marginally down 0.02%, while Spain’s IBEX 35 is down 0.1%.
Source: Capital
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