European markets react to U.S. selloffs

London-European stock markets fell on Thursday, US stocks fell on Wednesday, and the Dow Jones Industrial Average First decline in 2022.

As of noon in the morning, the pan-European Stoxx 600 index fell 1%, recovering some of the decline at the opening.

Except for banks and automobiles, all industries and most major exchanges are in the negative zone. Technology stocks led the decline, falling nearly 2.5% due to growing concerns about the imminent interest rate hike in the United States. When bond yields are high, the future returns of technology stocks are considered less attractive to investors—and they tend to be vulnerable when interest rates rise.

The European market follows closely Their Asia-Pacific counterparts fell on Thursday, Following the decline in the US stock market during Wednesday’s trading hours.

The decline followed Minutes of the Fed’s December Meeting Show official is Ready to call back The loose monetary policy of the central bank during the pandemic.

The Fed plans to reduce its holdings of U.S. Treasury bonds and mortgage-backed securities because it is already scaling back bond purchases and is preparing to raise interest rates after the reduction ends.

After the meeting minutes were released, the major Wall Street stock indexes fell sharply, with the Standard & Poor’s 500 Index falling 1.94% to 4,700.58. The Dow Jones Industrial Average fell 392.54 points to 36,407.11, while the technology-based Nasdaq Composite Index fell 3.34% to 15,100.17. US stock index futures were trading lightly overnight on Wednesday.

The data released in Europe on Thursday included German industrial orders in November and producer prices in the Eurozone in the same month.

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