European stocks to extend declines after England rate cut as global sentiment sours
Istanbul, August 2 (Hibya)—European stocks were set to open lower Friday, extending losses amid a global downturn as a busy week of market action draws to a close.
According to analysts, Germany’s DAX was on course to open 104 points lower at 17,984, with France’s CAC 40 down 40 points at 7,325. The U.K.’s FTSE 100 opened fractionally higher.
The regional Stoxx 600 index suffered its worst session since mid-June on Thursday, pulled down by financials as French bank Societe Generale downgraded its outlook, and the Bank of England cut interest rates for the first time since 2020.
The central bank decided to raise its key interest rate to 5 percent from 5.25 percent, a move markets had not been fully convinced it would carry out. The vote among policymakers was narrow, 5- 4.
The BOE also released its quarterly Monetary Policy Report, which forecasts U.K. headline inflation—currently at its target of 2 percent—to increase across the second half to hit 2.8 percent by year-end and remain slightly above 2 percent until 2025.
