Monetary policy dominates investor sentiment. Stoxx 600 closes worst week in month
Europe ended Friday’s session with its worst week in a month. Investor sentiment was dampened by concerns about central bank tightening.
The Stoxx 600, a benchmark for the region, slipped 0.83% to 437.12 points. Of the 20 sectors that make up the index, only Oil & Gas and Food ended the day in the green.
The meeting was marked by statements from three Fed members emphasizing the need to continue raising interest rates. Richmond Federal Reserve Governor Thomas Barkin said the Federal Reserve “must do whatever it takes to contain inflation.”
In doing so, Thomas Barkin joined two other members of the Federal Open Market Committee (FOMC) – James Bullard and Esther George – who, quoted by Bloomberg, stressed the need to keep raising interest rates to ensure inflation remains the target of 2% reached.
For analysts, the Stoxx 600’s July rally may be over. Both Bank of America and JPMorgan Chase have lowered their earnings forecasts for European benchmarks this year.
Bloomberg’s monthly survey also suggests that the Stoxx 600 ends at 447 points.
Elsewhere in Europe, London ended on the waterline, Madrid down 1.26%, Frankfurt down 1.18% and Paris down 0.94%.
Amsterdam, in turn, depreciated 0.87%. Milan suffered losses, slipping 1.95%. Here Lisbon followed the European trend and lost 0.10%.