Stock Selloff Continues as Fed Fears Concern Traders – Europe Market Wrap
The selloff in US stocks continued on Friday, as fears of the Fed’s hawkish tilt fuelled a continued retreat from risk. UK assets were hammered amid renewed worry over the country’s finances.
Nasdaq 100 futures fell 1.2%, indicating that technology companies would once again lead the drop. The measure fell more than 2% in the previous session as rising uncertainties about an interest rate drop next month fuelled new concerns about stretched valuations. The S&P 500 was poised for its first back-to-back weekly drop since June. Bitcoin fell to a six-month low.
UK gilts fell after Reeves withdrew plans to hike income tax rates in the upcoming budget, raising concerns about how she would address a revenue shortfall.
The news that the decision reflected stronger economic prospects did not reassure investors, as the 10-year rate rose 11 bps to 4.54%. The Pound reversed its gains from November, as the FTSE 100 fell to its lowest level since April. The Pound reversed its gains from November, as the FTSE 100 fell to its lowest level since April.
Meanwhile, experts cited statistics indicating that economic activity in China cooled more than predicted at the start of the Q4, with an unprecedented drop in investment and weaker industrial growth contributing to the pessimistic tone.
