European Stocks Down to Central Banks' Hawkish Statements.
London, Tuesday, 20 December 2022
The benchmark STOXX 600 and the German DAX both declined 0.2% and 0.4%, respectively, as European equity markets ended the day lower.
Rate-sensitive financials and tech stocks fell more than 1%, while shares of retailers and travel and leisure companies fell more than 5%. Conversely, major oil companies and miners saw profits.
Traders continued to consider the hawkish statements from significant central banks while attempting to predict how even higher interest rates may affect the economy.
Market participants view the Bank of Japan's unexpected increase in the upper limit of its tolerance band for 10-year government bonds from 0.25% to 0.5% as the first indication that significant stimulus may be withdrawn amid a shift toward hawkish policy.
(Report by: The Decision Maker - Finance editors)