European shares open lower on Powell speech; Asian stocks witness a scene of carnage

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European shares open lower on Powell speech; Asian stocks witness a scene of carnage

On Monday’s early-morning European trading hours, a basket of European stocks’ indices had opened up the session lower, while stocks across the Asia-Pacific region had been met with a muffled momentum as Powell’s Friday’s speech on Jackson Hole had led to a ludicrous melt-down in investors’ confidence.

In the matter of the fact, in the day’s havoc-scale downswing in European stocks’ indices followed a 2.6 per cent weekly percentage decline in the regional pan-European STOXX 600, as Fed’s Powell’s inaugural speech on Jackson Hole appeared to have added to a growing list of holocausts that had been maiming market participants’ optimism.

Powell said at his speech on Jackson Hole that the US Fed policymakers are expecting a higher inflation level for up to some time, while Cleveland Fed’s Mester was quoted saying in a press agency report that the US Fed was expecting an interest rate above 4.0 per cent as early as this year, while further rate-hikes would follow next year.

Amid such gruelling atmosphere for small- and intermediate-scale businesses, both main street and institutional investors had reportedly been jumping on the band-wagon of a mass-scale sell-off frenzy while upturning the applecart of money markets across the globe.

European stocks open lower after Powell Speech

Citing statistics, on Monday’s early-morning European trading hours, London’s blue-chip FTSE 100 futures were trading 0.75 per cent lower to 7,369.0 after drowning as much as 0.70 per cent on Friday and French CAC 40 fell 1.41 per cent to 6,185.99, while Frankfurt’s DAX dwindled 1.25 per cent.

Elsewhere in the Europe, Italy’s FTSE MIB muzzled 1.05 per cent to 21,665.23, while Madrid’s IBEX 35 lost 1.15 per cent to 7,971.30. Besides, MSCI’s index of Asian market excluding Japan faltered 1.88 per cent, while Japan’s Nikkei 225 tumbled 2.66 per cent to 27,878.96.

On top of that, Hong Kong’s Hang Seng sapped 0.77 per cent, while mainland China advanced 0.14 per cent, bucking the market trends.