European Stocks Down to ECB’s Announcement.
London, Thursday, 08 September 2022
After the ECB increased rates by an unprecedented 75 basis points and signalled that future rate hikes are likely given the high level of inflation, European stocks continued to decline on Thursday, with the DAX lagging its peers and plunging over 1.5%.
The central bank also increased its projections for inflation while decreasing those for growth. The regional STOXX 600, however, declined by around 0.2%.
The session is expected to be volatile as investors remain cautious and concerned about the energy crisis, the economy's prospects, and the likelihood that rising borrowing prices will seriously harm GDP.
(Report by: The Decision Maker – Finance editors)