Global stock prices fell on Thursday as central banks raised interest rates again and economic data from China and the US fueled recession fears.
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The Bank of England and the European Central Bank (ECB) raised their key interest rates by 0.5 percentage points on Thursday, one day after the Federal Reserve (FRS). The central banks of Norway and Switzerland also raised interest rates.
Investor sentiment had already been dampened by the FRS’s assumption that US interest rates will hit 5.1% next year, higher than market expectations.
The Bank of England raised its key interest rate to 3.5%, the highest level in 14 years, and warned that labor market tightness and inflationary pressures warranted “a further strong monetary policy”.
A similar message was delivered by the ECB, whose president Christine Lagarde warned that inflation in the eurozone is still “too high” and more action is needed.
Oil prices it fell as the economic outlook worsened.
The US dollar rose against the euro and other currencies.
The US stock index “Dow Jones Industrial Average” fell 2.3% to 33,202.22 points Thursday, the “Standard & Poor’s 500” index fell 2.5% to 3,895.75 points and the index “Nasdaq Composite” decreased by 3.2% to 10,810.53 points.
London’s FTSE 100 fell 0.9% to 7,426.17 on Thursday, Frankfurt’s DAX extension 30 index fell 3.3% to 13,986.23 points, while the CAC 40 index of the Paris Stock Exchange fell 3.1% to 6,522.77 points.
WTI crude oil fell 1.5% to $76.11 a barrel on Thursday in electronic trading on the New York Stock Exchange. The price of “Brent” crude oil on the London stock exchange decreased by 1.8% to 81.21 dollars a barrel.
The euro fell $1.0682 to $1.0627 per euro on Thursday, the British pound fell $1.2426 to $1.2175 per pound and the dollar rose against the Japanese yen by 135.48 to 137.80 yen to the dollar. The euro rose against the British pound by 85.97 pence to 87.26 pence to the euro.
