European Stocks Close Sharply Lower
BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets ended sharply lower on Friday as concerns over inflation and rising U.S. Treasury yields continued to weight on equities.
Bond yields in the U.K. too rose today, lifted by Bank of England Chief Economist Andy Haldane s warning that it will be tough to rein in inflation.
Investors were also digesting a slew of earnings reports and economic data.
The pan European Stoxx 600 declined 1.64%. The U.K. s FTSE 100 ended lower by 2.35%, France s CAC 40 slid 1.39% and Germany s DAX lost 0.67%, while Switzerland s SMI lost 1.28%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey all closed notably lower. Greece and Ukraine edged up slightly.
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LONDON (Reuters) - Bank of England Chief Economist Andy Haldane warned on Friday that an inflationary “tiger” had woken up and could prove difficult to tame as the economy recovers from the COVID-19 pandemic, potentially requiring the BoE to take action.
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In a clear break from other members of the Monetary Policy Committee (MPC) who are more relaxed about the outlook for consumer prices, Haldane called inflation a “tiger (that) has been stirred by the extraordinary events and policy actions of the past 12 months”.
“People are right to caution about the risks of central banks acting too conservatively by tightening policy prematurely,” Haldane said in a speech published online. “But, for me, the greater risk at present is of central bank complacency allowing the inflationary (big) cat out of the bag.”
Bank of England Official Warns Inflationary Tiger Has Awoken, Sending Bond Yields Higher – NBC Connecticut nbcconnecticut.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nbcconnecticut.com Daily Mail and Mail on Sunday newspapers.
2/24/2021 6:43:25 AM GMT
GBP/USD refreshed 34-month tops, beyond 1.4200 during the Asian session on Wednesday.
Overstretched conditions prompted some selling at higher levels and led to a modest pullback.
Investors now eye BoE s Monetary Policy Report Hearing before the UK Treasury Committee.
The GBP/USD pair prolonged its recent bullish trajectory and surged to fresh 34-month tops, beyond the 1.4200 mark during the Asian session on Wednesday. The momentum marked the fifth consecutive day of a positive move and was supported by a combination of factors. The sterling remained well supported by the impressive pace of COVID-19 vaccinations in Britain, the UK government s plan to ease current lockdown measures and Tuesday s upbeat UK employment details. UK Prime Minister Boris Johnson unveiled a new four-step plan to end restrictions by 21 June and lifted hopes for a swift UK economic recovery. On the economic data front, the latest UK jobs report showed that Claimant Count unexpecte