European stock markets are operating in a steady decline this Thursday morning (19), with the exception of Lisbon, in adjustment to the stress triggered by the cautious tone of the Federal Reserve (Fed). Investors are still awaiting the Bank of England (BoE) decision in the coming hours.
At around 6:35 am (Brasília time), the Stoxx 600 index fell 1.18%, to 508.34 points
On Wednesday (18), after the close of European business, the Fed cut interest rates by 25 basis points, but spread risk aversion across the world by signaling a more conservative path for monetary relaxation, with just two reductions. of the base rate projected for 2025.
The scenario pushes long Treasury yields to the highest levels since May and is also echoed among European yields, which amplifies the pressure on equity trading.
Losses are widespread, but oil and mining shares face particular difficulty amid the liquidation of commodities. Antofagasta fell 2.87% and Anglo American fell 2.03%, while BP fell 0.76%.
“The Fed may have ruined the Santa Claus rally,” warns analyst Ipek Ozkardeskaya, from Swissquote Bank, in reference to the phenomenon that historically tends to bring gains to stock markets at Christmas time.
Despite this, European currencies already find room for recovery against the dollar in this session. Not long ago, the euro rose to US$1.0418, following the improvement in the German consumer confidence index measured by the Gfk institute. The pound was already rising to US$1.2661, waiting for the BoE, which should pause the monetary relaxation process.
The London Stock Exchange fell 1.10%, Frankfurt dropped 0.95%, Paris fell 1.16% and Milan fell 1.00%. As an exception, Lisbon rose 0.26%, with help from Correios de Portugal, up 7.17%.
