Europe: Losses extended

Business Times

LONDON: European stock market fell further Wednesday after two days of losses and awaiting minutes of the Federal Reserve’s last policy meeting for clues on the outlook for US interest rates.

London’s benchmark FTSE 100 index dropped 0.44 per cent to stand at 6,708.55 points in midday deals.

Frankfurt’s DAX 30 edged down 0.02 per cent to 9,770.51 points and Paris’ CAC 40 slipped 0.14 per cent to 4,337.23 compared with Tuesday’s close.

“European markets remain cautious... amid fears that equities have risen too far, too fast to justify their current valuations and that US interest rates will rise sooner than expected,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“Investors will be hoping that June’s Fed minutes, released later today, will provide some clarity and reassurance that US Federal Reserve chief Janet Yellen can continue to hold sway over her more hawkish colleagues.” AFP