Europe: Markets recede at open

EUROPE’S stock markets inched lower on Monday (Oct 31) in a subdued start to the week, as more interest rate hikes loom in Britain and the United States to tackle soaring inflation.

In initial deals, London’s benchmark FTSE 100 index dipped 0.1 per cent to 7,040.66 points, compared with the close on Friday.

In the eurozone, the Paris CAC 40 fell 0.3 per cent to 6,252.44 points and Frankfurt’s DAX index retreated 0.1 per cent to 13,235.34.

The US Federal Reserve will announce the outcome of its latest monetary policy gathering on Wednesday, when it is widely expected to spring a fourth successive 75 basis point rate hike.

One day later, the Bank of England is also forecast to deliver a hefty increase in UK borrowing costs.

Central banks have been raising interest rates aggressively in efforts to tame runaway inflation, which has soared as energy and food prices jumped this year after Russia’s invasion of Ukraine.

Many investors fear, however, that rising interest rates will curb consumer and business spending and help send the world economy into recession. AFP