Major European indexes were lower at the start of the session on Thursday (13/6) as investors weighed the Federal Reserve’s latest interest rate decision, as well as new inflation data on US.
The pan-European Stoxx 600 was down 0.30% at 521.34, with the travel and auto sectors leading the losses, both shedding around 0.8%.
In Germany the DAX decreased 0.32% to 18,584.55 points, in Britain the FTSE 100 decreased 0.15% to 8,203.80 points, in France the CAC 40 decreased 0.24% to 7,846.11 points, in Spain the IBEX decreased 335% to 0.15% and in Italy the FTSE MIB decreased 0.37% to 34,231 points.
Regional markets “melting” the Fed’s decision to keep interest rates on hold in the 5.25% to 5.5% range, while at the same time talking about only one rate cut this year. Remember that at the March meeting, the central bank talked about three cuts. However, the dot plot also shows a more aggressive path of reductions for 2025, where four cuts are expected, from the three planned.
The Fed’s move came shortly after the latest US inflation measure. The consumer price index was flat in May, below estimates Dow Jones for a monthly increase of 0.1%. Every year, formed by 3.3%, which is also below expectations. In its post-meeting statement, the Fed said that “inflation has slowed compared to last year, but remains high.”
Most Asian markets higher today, with Chinese electric vehicle stocks posting gains though the new imposition of tariffs from the European Union of 38% to Chinese electric vehicle manufacturers.