LONDON: European stock markets retreated at the open Monday as investors awaited the US Federal Reserve’s first interest-rate cut since the start of the Covid pandemic more than four years ago.
London’s FTSE 100 index fell 0.3 percent to 8,251.72 points ahead of the Bank of England’s (BoE) latest decision on borrowing costs due Thursday, one day after the Fed outcome.
In the eurozone, the Paris CAC 40 index shed 0.3 percent to 7,445.89 points and Frankfurt’s DAX lost 0.3 percent to 18,636.04.
The BoE is expected to keep its key rate unchanged after cutting in August, while the European Central Bank further reduced borrowing costs last week as inflation cools.
European stocks wrap up week on a high note
“Markets are in ‘wait and see’ mood amid high anticipation of the crunch interest rate decision from the Federal Reserve this week, with a vote also eyed at the Bank of England,” noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“Investors remain split about the size of the Fed rate cut, which the policymakers are expected to deliver. More bets are being put on the likelihood that there may be 50 basis-points reduction announced, which has pushed down the dollar slightly.”
Source: Brecorder
