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European Stocks Edge Lower Ahead Of ECB Decision

FTSE 100 and European stocks opened lower on Thursday as investors reflect on the Federal Reserve’s interest rate hike and brace themselves for the European Central Bank’s decision.

The U.S. Federal Reserve announced a 25 basis point hike to a target range of 5% to 5.25%. This is the 10th consecutive interest rate increase by the Fed since March 2022, when the central bank began its battle against rising inflation. The current interest rate range is the highest since November 2007.

London’s FTSE 100 retreated by 0.46% to 7,753.03 during the morning session, while the CAC 40 fell by 0.72% to 7,350.16 points. Germany’s DAX declined by 0.73% to 15,699.62.

Analysts largely expect the European Central Bank to hike interest rates by 25 basis points, following the footsteps of the Federal Reserve. There is some speculation that the hike could be higher.

“The European Central Bank is expected to raise interest rates by 25 basis points, but there might be potential for a 50 basis point move. This would represent a hawkish surprise for Euro buyers, Jameel Ahmad, chief analyst at CompareBroker.io, commented.

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