HomeFinancial MarketsEuropean Stocks Waver Amid Banking Sector Turmoil

European Stocks Waver Amid Banking Sector Turmoil

European equities traded lower on Friday as investors continue to harbor concerns over the ongoing uncertainty in the global banking sector. This drop in confidence has dissuaded investors from taking risks in the markets.

Futures on the Euro Stoxx 50 declined by approximately 0.7%, contrasting with U.S. stocks. Contracts on the Nasdaq 100 and S&P 500 increased by 0.1% and 0.2% respectively. Asian stocks also took a downward turn, with Hong Kong’s Hang Seng Index sinking by 0.9% and China’s Shanghai Composite Index falling by 0.7%. Japan’s Nikkei edged 0.1% lower.

In addition to the ongoing banking crisis, investors also express concerns over the possibility of an incoming recession. “We think that recession is a very likely prospect and that may very well turn the tables and see the Fed take a much more cautious approach, perhaps at the end of the year, opening the way for a rate cut,” Sue Trinh, co-head of global macro strategy at Manulife Investment Management explained.

While Trinh acknowledged the possibility of the Federal Reserve cutting interest rates, she confirmed her belief that it may take long before such cuts are implemented.

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