European stocks are edging lower after trying to maintain momentum at all-time highs. The market is still adjusting to the Federal Reserve’s aggressive stance, which projected interest rate rises two times for 2023. Despite Fed chairman Jerome Powell’s attempt to put a dovish spin on last week’s shock, there will be a readjustment period for the markets. As a result, Dax and EuroStoxx50 each lost about half a percent to 15,588 and 4104 points, respectively.
Not even strong economic data dissuaded investors on Wednesday. Keith Temperton, a stock trader of Forte Securities, stated that economic data does not matter. Instead, the only data that matters is inflation. The trader further specified that it would not end anytime soon since if it does, everything will collapse.
Meanwhile, the London Stock Market outperformed its European peers. Oil and resource stocks boosted the FTSE 100 Index, which is set to hold on to its current highs.
Looking ahead to the US open, US futures seem more appeased by Fed Powell’s words than Europe. Furthermore, the downplaying of the risk of an early move to tighten monetary policy has elevated sentiment, and the tech-heavy Nasdaq is the clear winner.
Southeast Asian markets slid, except for Singapore and Manila
The Southeast Asian stock markets ended the sessions with losses on Wednesday except for the Singapore and Manila markets.
In Singapore, the city-state stock market rose 9.42 points or 0.30%, and the Straits Times composite indicator stood at 3,118.62 units.
The Jakarta stock market plunged by 53.30 or 0.88%, and the JCI index ended with 6,034.54 units.
The Kuala Lumpur Stock Exchange slipped by 9.26 points or 0.59%, and the selective KLCI ended at 1,564.76 units.
The Bangkok market slumped by 7.15 or 0.45%, and the SET index ended at 1,592.08 units.
The Manila Stock Exchange rose by 48.00 or 0.70%, and the PSEi composite index ended at 6,918.41 points.
In Vietnam, the VN Index of the Ho Chi Minh stock closed at 1,376.87 after falling 3.10 points or 0.22%.
Tokyo Stock settled almost flat
The Nikkei ended the trading session almost flat with a drop of 0.03% or 9.20 points to 28,874.89.
The Topix yielded 10.39 points or 0.53%, settling at 1,949.14.
The pharmaceutical company Esai posted the most considerable decrease of a day by 5.03%. Meanwhile, Lasertec, the producer of semiconductor components, added 2.52%.