Global stocks are seen struggling to get back on track as investors begin to balance the risks of a recession with expectations of central banks to aggressively raise interest rates.
The European Stock Exchange Index (Stoxx 600) was only able to add 0.2% in opening trade as Snap company warned of macroeconomic conditions and at the same time investors feared over US housing data and a disappointing business outlook.
The FTSE 100 London added 0.3 percent, while the S&P 500 Wall Street trade traded down 0.3% at 3,929.59, while the Nasdaq exchange composite fell 39.42 points or 0.35%.
The Federal Reserve, which influences monetary policy around the world, will release minutes of its early May rate -setting meeting early Thursday morning. There are strong signals that they will increase borrowing costs to tame inflation.
However, there are analysts questioning the extent to which the US central bank is willing to raise rates. “The market tells us that the risk of a recession is increasing,” said Mary Nicola, multi -asset portfolio manager at PineBridge Investments.
U.S. new home sales fell nearly 17 percent in April, month -on -month according to the report. A survey of purchasing managers also showed that growth in business activity in the US and UK slowed in May.
Investors began selling stocks in response to disappointing data.
The euro lost 0.6 percent against the US dollar to levels below $ 1.07, as a bullish sign driven by European Central Bank president Christine Lagarde marked the end of negative interest rates in the eurozone fading. The US dollar index strengthened 0.40% against six major currencies to trade level of 102.280.
