A sea of red awaits Europe as investors gave up any attempt at a rally in risk assets, after Fed Chair Jerome Powell made it clear that tackling inflation remains the central bank’s main concern and warned that rate hikes are still on the table.
Federal Reserve Chair Jerome Powell reacts to introductory remarks before speaking on “Monetary Policy Challenges in a Global Economy” during the international Monetary Fund’s (IMF) annual research conference on “Global Interdependence” in Washington, U.S., November 9, 2023. REUTERS/Kevin Lamarque
“[The Fed] is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2% over time,” Powell said.
“We are not confident that we have achieved such a stance. If it becomes appropriate to tighten policy further, we will not hesitate to do so.”
That led stocks lower, with MSCI’s broadest index of Asia-Pacific shares outside Japan skidding 1% to their lowest in a week. Futures indicated the dark mood was set to continue in European bourses.
ECB President Christine Lagarde is due to talk in a fireside chat later in the day and traders will pore over every word.
Movie buffs learned they will have to wait it out for some of their most-anticipated films. Walt Disney delayed the release of Marvel movie “Blade”, a new “Deadpool” instalment and several other films on Thursday as Hollywood studios adjusted schedules following the end of the four-month actors’ strike.
Key developments that could influence markets on Friday:
Economic events: UK September GDP, UK Q3 GDP, Oct CPI data for Norway and Sweden
Speakers: ECB President Christine Lagarde, ECB policymaker Joachim Nagel, SNB’s Thomas Moser
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