European stocks – German DAX index
European stocks rose on Wednesday, after strong US data overnight calmed fears of a sharp economic slowdown, even as European Central Bank President Christine Lagarde warned that the bank did not see enough evidence of slowing inflation.
And the heads of major central banks in the world confirmed, on Wednesday, that they expect more tightening in monetary policy to curb high and persistent inflation, but they still believe that they can curb inflation without causing a clear recession.
Jerome Powell, Chairman of the US Federal Reserve, did not rule out further rate hikes in successive meetings of the Bank, while Lagarde confirmed expectations that the Bank will raise interest rates in July, saying that such a move is “likely”.
As Jerome Powell emphasized, a recession in the US after the decision to raise interest rates is not the most likely possibility, but it is “definitely possible”.
“The least likely case is that we find our way to a better balance without a really severe recession,” he added.
But he added that there is also a “high probability of a slowdown,” adding that the US economy is enjoying a great deal of strength.
Market movements
The European Stoxx 600 index closed up 0.7 percent, as did the German DAX index by 0.64 percent, the French CAC40 index rose by 0.98 percent, and the British FTSE 100 index by 0.52 percent.
Chip equipment holding ASML rose 2.3 percent, while Nordic Semiconductor jumped 6.4 percent, making the technology sector among the biggest European gainers.
Semiconductor stocks were in focus after a report said the United States was considering imposing new restrictions on exports of artificial intelligence chips to China.
2023-06-28 17:26:07
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