CAC 40 falls 0.5% to close at 8,117 after ECB rate hike
The CAC 40 fell 0.5% to close at 8,117 on Thursday after the ECB raised its key interest rate to 2.5%. The 25-basis-point hike was followed by luxury and industrial stock losses.
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04:58:36 PM UTC
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By Sudeshna Ghoshal and Ragini MathurEuropean shares fell to two-month lows on Thursday as expectations of further interest rate hikes grew after the European Central Bank increased borrowing costs and warned of higher inflation due to a war-driven energy shock.The pan-European STOXX 600 TVC:SXXP w…
5%. 3% in August, the highest in three years and above the ECB’s 2% target. In its statement, the ECB said the conflict in the Middle East is continuing to add inflation pressure and that inflation is likely to stay well above target for an extended period. Reports said ECB officials expect further rate increases, with another move possible as soon as next month.
Oil prices jumped as concerns over prolonged energy supply disruptions grew after the biggest wave of attacks on shipping in the Strait of Hormuz by the US and Iran on Wednesday. 2%. 1%.