LONDON, June 21 — Europe’s stock markets swung lower today on growing expectations the Federal Reserve will begin lifting interest rates as early as next year, dealers said.
In opening deals, London’s benchmark FTSE 100 index slid 0.7 per cent to 6,969.79 points, compared with Friday’s close.
Frankfurt’s DAX 30 index fell 0.8 per cent to 15,325.98 points and the Paris CAC 40 also shed 0.8 per cent to 6,515.55, after earlier sharp losses in Asia.
Investors were spooked by comments from St. Louis Federal Reserve President James Bullard that the US central bank could start hiking interest rates as soon as late 2022.
“Comments from a Federal Reserve official acted to further fan the flames of inflationary fears and deal a blow to markets,” said Richard Hunter, head of markets at Interactive Investor.
“The observation from James Bullard that inflation was stronger than anticipated and could even result in a 2022 rate hike followed a hawkish switch from the Fed last week, when the likelihood of two interest rate rises in 2023 came to the fore.” — AFP
