Stock indexes fell, for the second consecutive day, following the decisions of the central banks, all of which were extremely cautious despite the slowdown in inflation.
-
Stock indexes plunge on the impact of central bank decisions
The world stock exchanges, especially the European ones, today, Thursday, reacted negatively to the decisions of the European central banks, and all were very cautious, despite the slowdown in inflation.
European stock exchanges recorded a greater decline than the previous day, with the Paris Stock Exchange losing 2.39%, the Frankfurt Stock Exchange by 2.26%, the Milan Stock Exchange by 2.31% and the London by -0.85%, until 14:10 GMT. .
On Wall Street, futures on the main American indices dropped between 1.1% and 1.5%, after also closing lower.
The European Central Bank has not deviated from it Guidance from the US Federal Reserve And the Bank of England and the central banks of Switzerland and Norway, which continued to raise the main interest rate, but less sharply than in previous months.
And the US Federal Reserve announced on Wednesday that it would raise interest rates by 50 basis points, the first time the rate of hike has slowed this year in light of efforts to fight inflation.
Read also: The head of the US central bank in New York is likely to continue to tighten monetary policy
Last month, the Federal Reserve raised the interest rate for the sixth time, and for the fourth time in a row, by the same amount, which is 75 basis points.
Those increases were preceded by one of 25 basis points and another of 50 points in March and May.
In the wake of that increase, the interest rate fluctuated between 4.25 and 4.50, the highest since 2007.
Monetary policy developments are a further source of concern for investors, who fear that higher interest rates will push the global economy into a recession.
The Empire State index of manufacturing activity in the New York region of the US northeast fell in December, after rebounding in November, as companies brace for an economic slowdown next year, not ruling out a recession .
Asian stock markets were also hit, after retail sales in China fell more sharply than expected in November, coming in at 5.9% for the year.
Read also: Biden: We inherited high inflation and are working to reduce it
The decline in household consumption in China in November weighed on luxury stocks.
Oil fell slightly after strong gains since the start of the week, as the price of a barrel of US West Texas Intermediate crude oil fell 0.44% to $76.96 and the price of a barrel of Brent North Sea it was down 0.47% at $82.31, to $82.31. It is 2pm GMT.
