European stocks start steeply lower on Fed remarks
On Monday, European stocks started steeply lower, as fresh speculation regarding a potential rate lift by the Fed this month applied pressure on global equities.
During European morning trade, the EURO STOXX 50 tumbled 1.75%, French CAC 40 lost 1.72%, while German DAX 30 descended 1.79%.
European equities edged down after Boston Fed President Eric Rosengren announced on Friday that the US economy has appeared to be more resilient to external risks and the gradual tightening will be fully appropriate.
The comments spurred fresh rumors over a potential rate increase in the nearer future.
Financial stocks traded mostly lower. It’s because French lenders BNP Paribas as well as Societe Generale dipped 2.25% and 2.19% respectively, while German Commerzbank along with Deutsche Bank sank 1.59% and 2.45% respectively.
In London, FTSE 100 descended 1.37%, weighed by Associated British Foods, whose stocks lost 4.82% even as on Monday, the company reported that it was raising its full-year earnings outlook.