November 22, 2024

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European shares fall 2.8% after weak eurozone data and new UK economic plan

European shares fall 2.8% after weak eurozone data and new UK economic plan

European shares fell sharply on Friday, as investors digested a raft of central bank decisions and a new economic plan from the United Kingdom

The Stokes 600 It was down 2.8% in early afternoon trade, with all major sectors and exchanges trading in the red.

Oil, gas and basic resources stocks were the biggest losers, both down more than 4%.

Thursday’s market moves come after the UK government Announce a set of tax cuts As the country prepares for recession. Sterling pound It was down 1.8% against the dollar near midday to trade at $1.1048 following the news.

Bank of England too high rates By 50 basis points on Thursday – the seventh straight increase – and she said she believed the UK economy was already in a recession.

Thursday also, the Swiss National Bank raised its standard price to 0.5%a shift that puts an end to the era of negative interest rates in Europe.

Meanwhile, the US Federal Reserve, It rose by another three-quarters of a percentage point Wednesday, and indicated that the rises will continue.

US stocks It closed lower on Thursday, the third consecutive daily decline, and futures contracts also fell on Friday.

Asia marketsMeanwhile, it was in the red, with Australian shares down 2%.

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