European shares rebound from one-year lows after Powell’s comments

European shares rebound from one-year lows after Powell’s comments
European shares rebound from one-year lows after Powell’s comments

European shares rebounded from session lows on Wednesday after Federal Reserve Chairman Jerome Powell said the US central bank was “strongly committed” to lowering inflation.
Wall Street erased its losses and turned to rise after Powell’s comments before the US Senate Banking Committee, while the European Stoxx 600 index closed down 0.7 percent, after it fell 1.8 percent to its lowest level since January 2021.
Analysts said markets were encouraged that Powell’s comments were free of surprises.
Stock markets took a hit last week as inflation concerns emerged after the Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point and signaled further increases. The Bank of England also raised interest rates and the European Central Bank is expected to start a cycle of interest rate hikes next month.
Data on Wednesday showed a sharp rise in food prices pushed British consumer price inflation to a 40-year high of 9.1 percent last month, underscoring the severity of the cost of living problem. The FTSE index of major British companies was down 0.9 percent.
European commodity-related shares were among the biggest losers in today’s session, with iron ore and copper prices falling due to concerns about supply and growth in China. Oil and gas stocks fell 3.3 percent, as crude prices fell due to US President Joe Biden’s plan to cut fuel costs for drivers.
Gains in defensive sectors such as real estate, food and beverage and health care contributed to capping market losses.
On the Frankfurt Stock Exchange, the DAX index of major German shares closed 1.1 percent lower, with BASF shares falling 5.8 percent, after the chief executive of the German chemical giant said the company was likely to face a significant slowdown in the early second half of this year.
Steel stocks fell from 11.1 percent to 13.1 percent after JPMorgan cut its rating on the sector, saying steel prices were expected to continue falling.

The article is in Arabic

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