At 14:15 GMT, the pan European Stoxx 600 index was down 0.74% to 445.05, after closing Monday at its highest level since April 29. The U.K.'s FTSE 100 index fell 0.3% to 7,700.55. France's CAC40 index dropped 0.77% to 6,854.01. Germany's DAX index shed 0.3% to 14,748.13. Switzerland's Swiss Market index dropped 0.83% to 11,119.89.
Powell's speech later in the day was on investors' radar after Fed policymakers said they expected the Fed policy rate - now at 4.25% to 4.5% - to need to rise to a 5%-5.25% to rein in inflation.
Aggressive monetary tightening by the Fed has prompted fears of a recession in the U.S., which would weigh heavily on the global market given the importance of the largest economy in the world.
In CORPORATE NEWS: BMW shares rose 0.6% after the German auto giant said its brand delivered 2.1 million vehicles in 2022, down 5.1% from the previous year, but still maintained its number one position in the global premium segment.
ECONOMIC NEWS: France's industrial production rebounds- France's industrial production increased 2% month over month in November 2022, the statistical office INSEE reported. Likewise, manufacturing output gained 2.4 percent, in contrast to the 2.1 percent decrease a month ago.
UK Economic Slowdown to Cap Inflationary Pressures- Bank of England Chief Economist Huw Pill said the slowdown in the UK economy together with the tight labor market conditions will put a lid on domestic inflationary pressures and weaken the risk of persistent inflation. But the extent to which an easing in the labor market induced by monetary tightening will weigh against inflationary pressures will depend on the wider context, he stated.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
