Source: AFP
European stocks fell on Thursday after mixed shows in Asia and on Wall Street, as investors reacted to signals from the US Federal Reserve that it plans just one rate cut this year.
Paris and Frankfurt were the biggest losers, down more than one percent nearing the halfway mark, as investors continued to monitor the fallout from shocks from the weekend’s European Union election.
Oil prices fell nearly one percent, while the euro and pound were steady against the dollar.
The European single currency has rebounded from heavy losses in recent sessions after French President Emmanuel Macron said he would not step down if his party loses the snap election he called after being defeated by the far-right in EU-wide polls.
In the United States, the Federal Reserve left its key lending rate unchanged on Wednesday and marked just one rate cut this year, out of the three expected in March.
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Asian shares rest on Wall St records after US inflation data
Although annual US inflation fell to 3.3% last month, the decline was below expectations, while the consumer price index remains just above the Fed’s two percent target.
“Fed Chairman Jerome Powell didn’t give away a huge amount, although it seemed to indicate he was quite cautious about the lower-than-expected inflation data from earlier in the day,” noted AJ Bell chief investment officer Russ Mould. .
“The central bank is clear that it wants further evidence that inflation is on track for the magic two per cent level before it prepares to start cutting interest rates. A major sticking point is the continued tight labor market conditions.”
Investors were also watching the yen as the Bank of Japan began a two-day policy meeting, with speculation mounting that it is preparing the ground for further tightening after raising interest rates in March for the first time in 17 years.
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![](https://images.yen.com.gh/images/e60a74cf4cd50e9f.jpg?impolicy=cropped-image&imwidth=256)
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US inflation data unlikely to change Fed’s plans to keep rates steady
Japan has been extreme in recent years, deciding not to raise interest rates to fight high inflation. And at a time when major central banks are scrambling to reduce borrowing costs, the BoJ has decided to hike.
Keys around 1100 GMT
London – FTSE 100: Down 0.5% to 8,174.59 points
Paris – CAC 40: Down 1.4% to 7,758.67 points
Frankfurt – DAX: Down 1.1% to 18,424.88 points
EURO STOXX 50: Down 1.1% to 4,981.29
Tokyo – Nikkei 225: Down 0.4 percent at 38,720.47 (close)
Hong Kong – Hang Seng Index: UP 1.0 percent at 18,112.63 (close)
Shanghai Composite: DOWN 0.3 percent at 3,028.92 (close)
New York – Dow Jones: DOWN 0.1 percent at 38,712.21 (close)
EUR/USD: DOWN to $1.0800 from $1.0811 on Wednesday
Euro/pound: UP to 84.53 pence from 84.45 pence
GBP/USD: DOWN to $1.2777 from $1.2797
Dollar/yen: UP to 157.18 yen from 156.86 yen
![](https://images.yen.com.gh/images/32b95876f4a94f65.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/32b95876f4a94f65.jpg?impolicy=cropped-image&imwidth=256)
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Asian markets stutter as investors fret ahead of US announcements
West Texas Intermediate: DOWN 0.8% to $77.86 a barrel
Brent North Sea crude: DOWN 0.8% to $81.94 a barrel
Source: AFP