Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

European stocks lower on hawkish Fed minutes, China's woes; BAE slumps

Published Aug 17, 2023 02:27AM ET Updated Aug 17, 2023 04:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
DE30
+0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
+0.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
F40
+0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EUR/USD
+0.31%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
+0.69%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FCHI
+0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - European stock markets traded lower Thursday on growing worries around China’s stuttering economy and the potential for higher U.S. interest rates.

At 03:50 ET (07:50 GMT), the DAX index in Germany traded 0.6% lower, the CAC 40 in France dropped 0.6%, while the FTSE 100 in the U.K. traded 0.5% lower.

Fed minutes offer hawkish slant

The minutes of the Fed’s July meeting showed a number of officials still saw the need for more interest rate hikes to combat still elevated inflation levels, potentially weighing on economic activity in the world’s largest economy, a major global growth driver.

“Most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” according to minutes published Wednesday in Washington.

Additionally, the July Fed meeting came before a raft of U.S. data that underscored the resilient economy.

Fitch may look at downgrading China’s rating

Adding to the negative sentiment was the news that rating agency Fitch Ratings may consider rethinking China’s A+ sovereign credit rating, especially if corporate debt conditions worsen and the government expands its balance sheet to support the companies.

This comes amid fresh concerns about the country’s property sector, which have contributed towards Chinese economic growth slowing sharply in the second quarter of 2023.

Gloomy European economic outlook

Back in Europe, the economic outlook is downcast, as evidenced by Dutch government policy adviser CPB predicting economic growth in the Netherlands will be much slower than earlier expected this year, as a recession in the first half of 2023 ended a strong post-COVID-19 boom.

Eurozone gross domestic product rose 0.3% in the second quarter, the EU's statistics agency said Wednesday, but underlying growth was probably weaker, as the data was distorted by a 3.3% jump in Irish GDP, which is driven by the oversized impact of big foreign companies based there for tax reasons.

BAE Systems slips on acquisition news

In corporate news, BAE Systems (LON:BAES) stock fell 3.3% after Britain's largest defence company said it agreed to buy Ball Corp's (NYSE:BALL) aerospace assets for about $5.55 billion in cash.

GN Store Nord (CSE:GN) stock slumped 11% after the Danish hearing aid manufacturer talked of "challenging market conditions", while Aegon (AS:AEGN) stock fell 4.6% after the Dutch financial services company reported a first-half net loss.

On the flip side, Philips (AS:PHG) stock rose 3.5%, with the Dutch healthcare technology group continuing to benefit from the news earlier this week that Exor, the investment arm of Italy's Agnelli family, has become the top investor by buying 15%.

Crude slips as U.S. production hit three-year high

Oil prices edged higher Thursday, rebounding from two-week lows, helped by a bigger-than-expected draw in U.S. inventories.

However, sentiment remains weak given worries slowing growth in China and a continued hawkish stance from the Federal Reserve will weaken fuel demand in the world's two biggest economies.

Additionally, data from the Energy Information Administration showed that U.S. production hit a new three-year high last week, close to the record-high levels produced before the COVID-19 outbreak in 2020.

By 03:50 ET, the U.S. crude futures traded 0.4% higher at $79.72 a barrel, while the Brent contract climbed 0.5% to $83.83. Both contracts earlier hit their weakest level in two weeks.

Additionally, gold futures fell 0.2% to $1,925.35/oz, while EUR/USD traded 0.1% higher at 1.0878.

European stocks lower on hawkish Fed minutes, China's woes; BAE slumps
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email