European stocks and US futures rallied, signaling a break in the equity slump that began Friday when Chair Jerome Powell stressed the Fed is willing to let the economy suffer to cool price pressures. Retailers and banks led the gains, while energy companies and miners underperformed.
Euro-area economic confidence dropped to its lowest level in 1 1/2 years, though Spanish inflation eased for the first time in four months. Powell’s push back against market hopes for a pivot to interest-rate cuts next year is the latest setback in a challenging year for investors. The Fed this week is also set to step up the unwinding of its near-US$9 trillion balance sheet. Other risks range from China’s economic slowdown to Europe’s energy crisis as Russia continues its war in Ukraine and chokes gas supplies.
Minneapolis Fed President Neel Kashkari said sharp stock-market losses show investors have got the message that the US central bank is determined to contain inflation. “People now understand the seriousness of our commitment to getting inflation back down to 2 per cent,” he said.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CTVNews - 🏆 1. / 99 Read more »
Source: globeandmail - 🏆 5. / 92 Read more »
Source: BNNBloomberg - 🏆 83. / 50 Read more »