TECHNICAL ANALYSIS OF FTSE 100 & NEWS – 20 SEPTEMBER 2022
FTSE 100: NEWS & TECHNICAL ANALYSIS
European Stocks Higher; German Producer Prices Soar To Record Levels
European stock markets edged higher Tuesday, following the global trend upwards, although sentiment remains fragile ahead of the start of the U.S. Federal Reserve’s two-day policy meeting.
By 04:00 ET (08:00 GMT), the DAX in Germany traded 0.1% higher, the CAC 40 in France rose 0.1%, and U.K.’s FTSE 100 climbed 0.4%.
European equities are staging a recovery from last week’s selloff, carrying on from the positive close on Wall Street, where the major U.S. benchmark averages climbed from 9-week lows.
However, gains are tentative ahead of the start of the Fed’s latest meeting, which is widely expected to result in another 75-basis point interest rate hike following last week’s higher than expected consumer inflation figures.
The Fed won’t be alone in raising rates this week, with Sweden’s Riksbank hiking by a full percentage point earlier Tuesday and the Bank of England, the Swiss National Bank, and the Norges Bank in Norway all expected to largely follow suit.
German producer prices rose by 7.9% in August, and were up 45.8% from a year earlier, likely increasing pressure on the European Central Bank to keep raising interest rates.
Both figures were records in the 83-year history of the Federal Republic and were well above analysts’ expectations.
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