- Title: European shares drop as policymakers seek to tame hot inflation
- Date: 29th August 2022
- Summary: FRANKFURT, GERMANY (AUGUST 29, 2022) (REUTERS) TRADING FLOOR TRADERS AT DESK / DAX INDEX BOARD DAX INDEX BOARD VARIOUS OF TRADERS AT DESKS AND DAX INDEX BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The markets are in the iron fist of fear over interest rates and have buckled somewhat here in Europe especially after rem
- Embargoed: 12th September 2022 15:16
- Keywords: Europe stockss Russia Ukraine war gas inflation
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Europe,Economic Events
- Reuters ID: LVA001119729082022RP1
- Aspect Ratio: 16:9
- Story Text: European shares dropped on Monday (August 29) while bond yields surged as comments from central bank policymakers heightened fears of aggressive measures to stamp out inflation amid rising risks of a recession.
The STOXX 600 index fell 0.9% to a more than one-month low, with interest rate-sensitive tech stocks tumbling 1.8%.
European Central Bank (ECB) board member Isabel Schnabel warned over the weekend that central banks must act forcefully to combat inflation even if that dragged economies into recession, while governing council member Francois Villeroy and policymaker Martins Kazaks also signaled another big rate step in September.
Their comments followed Federal Reserve Chair Jerome Powell's warning on Friday that the U.S. central bank would raise rates as high as needed to restrict growth and keep them there "for some time."
Markets are pricing in a two-thirds chance that the ECB could hike rates by 75 bps in September, up from 24% last week.
Markets in the United Kingdom were closed on Monday for a holiday.
(production: Andy Buerger, Tilman Blasshofer, Tanya Wood) - Copyright Holder: REUTERS
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