European markets traded lower on Wednesday morning, with sentiment shaken by troubled U.S. debt-ceiling talks.
this Stoke 600 At 9 a.m. London time, the index was down 1.4%, with all sectors in the red, with France’s CAC40 down 1.5%. Auto stocks led the sector lower, falling 2.2 percent.
House Speaker Kevin McCarthy Says He’s Discussed With President Joe Biden on Mondaybut there were few signs of progress in Tuesday’s talks.
U.S. Treasury Secretary Janet Yellen warned legislators before The likelihood of a default in early June was “significant”.
Global markets are pessimistic, Asia Pacific shares drop and US futures reduce.
UK inflation data released on Wednesday morning showed headline rate drops sharply It rose to 8.7 percent from 10.1 percent, although that was higher than the Reuters consensus estimate of 8.2 percent. Prices rose 1.2% month-on-month, beating expectations for a 0.8% rise.
Inflation for food and non-alcoholic beverages eased slightly, but remained high at 19.1%.
“A large part of the decline in April is attributable entirely to accounting metrics,” said Jeremy Batstone-Carr, European strategist at Raymond James Investment Services. “Energy prices are up 47.5% through April 2022. Thanks to government energy Price guarantees, this energy price increase is now taken out of the year-on-year equation, leading to a natural decline in relative inflation.”
He added that the rise in core CPI to 6.8% from 6.2% was a “deep blow to the troubled Bank of England” and suggested that interest rates may not have peaked yet, with another 25 basis point hike in June still on the cards.
International Monetary Fund on Tuesday join in Bank of England in explain It no longer expects a recession in Britain this year.