Technology stocks pushed European stock markets lower Wednesday after hawkish comments from Federal Reserve Chairman Jerome Powell, while real estate stocks tumbled after expectations of yet another rate hike raised concerns about the cost of mortgages as US inflation continued to decline. Britannia.
The European Stoxx 600 index closed down 0.5%, continuing its decline for the third consecutive session.
Powell told US lawmakers that the battle against inflation is “far away” and that officials agree that borrowing costs may need to rise despite a pause in interest rate hikes at the latest meeting of the Monetary Policy Committee. .
Technology stocks, which are sensitive to changes in interest rates, shed 1.6%.
The UK CPI fell short of expectations and remained at 8.7% in May. The data comes a day before the meeting of the Bank of England’s monetary policy committee, which is expected to raise interest rates for the thirteenth time in a row, and the index of the real estate sector fell by 1.6%.
