European stock markets decline ahead of us inflation datawritten by Bella Palmer
The FTSE 100 fell 0.5%, while the CAC tumbled 0.1% in Paris, and the Frankfurt DAX was 0.2% higher
European stock markets continued their decline on Thursday as traders remained cautious ahead of US inflation data.
In London, the FTSE 100 fell 0.5% after opening, after plunging to an 18-month low in the previous session, while the CAC tumbled 0.1% in Paris, and the Frankfurt DAX was 0.2% higher.
Housebuilders were amongst the largest fallers during the morning due to recent signs of slowing house prices.
It was another disappointing session for the FTSE 100 yesterday as the UK blue chip closed at an 18-month low, dragged lower by a sharp fall in banks and house builders as a result of a sharp rise in long term (bond) yields, Michael Hewson of CMC Markets said.
This rise in yields has been driven over concerns about the fiscal plans of the UK government as well as the prospect of a bumper rate hike by the Bank of England in November, he said.
It comes as a report from the Royal Institution of Chartered Surveyors (RICS) said that UK homeowners will struggle to make mortgage repayments and repossessions will rise next year.
On Wall Street, S&P 500 futures were up 0.1%, Dow futures were also 0.1% higher, and Nasdaq futures were treading water as trade began in Europe.
It came after a sixth consecutive decline for the S&P 500 on Wednesday, which fell to the lowest level since November 2020.
Bond yields remained depressed on Thursday as investors weighed the risks of global recession amid a hawkish Federal Reserve and uncertainty about the Bank of England's commitment to stabilising markets.
All eyes will be on the upcoming US consumer price figures. Minutes released on Wednesday from the Fed’s last meeting suggested some officials considered reducing the pace of rate hikes, which triggered a brief surge on Wall Street that quickly unwound.
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