European Stocks Slide as Fed Minutes Signal June Hike Possible

European stocks fell from a two-week high after minutes from the Federal Reserve’s last meeting showed officials want to raise interest rates next month if the economic pickup stays supportive.

The Stoxx Europe 600 Index lost 0.4 percent at 8:13 a.m. in London, with commodity producers declining the most. Fresnillo Plc and Anglo American Plc slipped more than 4 percent, following metal prices lower. Europe’s benchmark climbed with banks yesterday, after closing little changed for the previous two sessions.

Fed officials used the word “June” six times in a policy context, minutes from the April meeting showed late yesterday, following speeches by regional Fed bank presidents warning investors not to dismiss a mid-year hike. Traders are now pricing in a 32 percent probability of higher borrowing costs next month, from just 4 percent on Monday. The first month with at least even odds for a rise has been brought forward to September, from as late as February 2017 a week ago.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.