Hawkish Fed remarks dent global stocks

Minneapolis Fed Chairman Neel Kashkari on Tuesday reiterated the central bank’s commitment to controlling inflation through monetary policy tightening, and said his biggest fear was that continued pressures on prices are underestimated.

Anjali Sundaram | CNBC

LONDON — European markets were slightly lower on Wednesday as further hawkish comments from a US Federal Reserve the decision maker made investors hesitate.

The pan-European Stoxx 600 The index fell 0.3% at the start of trade, with retail and autos down 0.8% to lead the losses, with most sectors and major exchanges slipping into the red.

Minneapolis Fed Chairman Neel Kashkari on Tuesday reiterated the central bank’s commitment to controlling inflation through monetary policy tightening, and said his biggest fear was that continued pressures on prices are underestimated.

The comments came as markets brace for a much-anticipated speech by Fed Chairman Jerome Powell on Friday on the central bank’s tightening path, following his annual economic symposium in Jackson Hole, Wyoming.

Asia Pacific Equities were mixed on Wednesday after the Dow Jones Industrial Average and S&P500 posted a third consecutive day of losses in the previous session. China Shenzhen Component resulted in losses at the regional level.

US Stock Futures were lower in early trade before market Wednesday, as Wall Street looks poised for further losses ahead of Powell’s speech on Friday.

Back in Europe, investors will check out the European Central Bank’s minutes of its latest monetary policy talks, which are due out on Wednesday.

After hitting a 20-year low of $0.9901 on Tuesday, the euro rallied slightly overnight to trade at $0.9957 before the Wednesday bell.

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