Europe: Equities drop at open

EUROPE’S main stock markets sank in opening deals on Monday (Aug 22) on concerns about Federal Reserve plans to further hike interest rates to tackle soaring inflation.

In initial trade, London’s benchmark FTSE 100 index of major blue-chip companies lost 0.3 per cent to 7,526.82 points.

In the eurozone, Frankfurt’s DAX index shed 0.4 per cent to 13,488.86 points and the Paris CAC 40 retreated almost 0.7 per cent to 6,453.71.

Asian markets traded mostly lower as the rally from June’s lows runs out of steam owing to the Fed’s rate-hiking plans.

Investors are now focusing on a meeting of central bankers in Jackson Hole, Wyoming, that starts on Thursday.

“The recent rally ran out of steam as investors braced for the latest Federal Reserve pronouncements later this week,” said Richard Hunter, head of markets at Interactive Investor.

“The likely highlight of the annual Jackson Hole symposium will be a speech from Fed chair (Jerome) Powell.” AFP