Jakarta, CNBC Indonesia – European stock markets in the early session of the compact weakened sharply on Wednesday (22/6/2022), stopping its good performance yesterday. The world’s inflationary sentiment is still the main cause of the fall in European markets.
Stoxx 600 index at the beginning of the session sharply corrected 1.7% to position 402,84, where the shares of issuers of natural resources fell 3.1% and became the leader of the decline.
The same thing happened to the German DAX index, which fell 224.69 points or fell 1.69% to 13,067.71 and the FTSE index fell 1.33% to 7,057.11. Meanwhile, the French CAC index fell 1.74% to 5,860.81.
The weakening occurred amidst global market sentiment turning more negative due to soaring inflation and the potential for slowing economic growth.
Meanwhile, stock markets in Asia Pacific tended to trade lower as fears of a slowing economy weighed on market sentiment.
World crude oil prices fell more than 5% in today’s trading, where the benchmark Brent fell 5% to US$108.9/barrel, while WTI declined 5.5% to US$103.5/barrel.
Reuters also reported that US President Joe Biden plans to stop the federal tax of 18.4 cents per gallon on gasoline in a bid to lower soaring energy costs.
Futures contract (futures) US stock indexes also weakened in the early trading session, halting yesterday’s gains.
The chairman of the US central bank (Federal Reserve / The Fed) will give a statement before congress today. Investors will still be waiting for further signals about a rate hike path after the Fed announced it would raise interest rates by 75 basis points last week in the Fed’s biggest hike since 1994.
In addition, inflation data in the UK as of May jumped to 9.1% year-on-year (yoy) and touched a record high since 40 years. The soaring inflation was triggered by energy prices and the cost of living crisis.
CNBC INDONESIA RESEARCH TEAM
Next article
European Stocks Open in Green Awaiting ECB Policy
–
–
(aaf/aaf)
–
