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Market Analysis

European Shares Open Lower as Fed Trims Rate-Cut Projections
Amos Simanungkalit · 11.1K Views

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European shares opened lower on Thursday, impacted by higher government bond yields following a more cautious outlook on rate cuts from the US Federal Reserve. The STOXX 600, which had risen 1.2% the previous session, was down 0.2% as of 0715 GMT.

 

The Federal Reserve decided to keep interest rates unchanged on Wednesday, signaling a delay in potential rate cuts until possibly December, with projections now suggesting only one quarter-point decrease this year compared to three anticipated in March.

 

Bond yields in the euro zone climbed, with Germany's 10-year bund yield reaching 2.551%. Most sectors, particularly rate-sensitive real estate, experienced declines.

 

In individual stocks, BT rose 2.5% after Carlos Slim, a prominent Mexican investor, acquired a 3.16% stake in the UK's largest broadband and mobile operator. Conversely, Wise shares dropped 19.2%, ranking at the bottom of the STOXX 600, following the company's forecast of a 15%-20% growth in underlying income for the year, a slowdown from the previous year's 31% growth.

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.

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