Stock Markets Lower After Powell's Speech, DAX Fell by 0.28%
The main indexes of European stock exchanges declined after losses in the American stock markets, amid comments of the Federal Reserve System Chair Jerome Powell on the gradual increase in interest rates. The German DAX equity index fell today by 0.28% and is trading at 12.455.59. The German economic data showed, that Gfk Consumer Climate fell to 10.8, matching the forecast. Jobless claims decreased by 22 thousand, beating the forecast of a 17 thousand decline.
Eurozone inflation slowed to a 14-month low in February, underlining the European Central Bank's caution in removing stimulus despite growth exceeding expectations and the bloc's economy seeming to be on its best footing in a decade. CPI slowed to 1.2% from 1.3% in January, in line with expectations but far from the ECB's long elusive target of almost 2%. Core inflation measure, which excludes the prices of alcohol and tobacco, held stable in February at 1.0% year-on-year.
Federal Reserve Chairman Jerome Powell said the US economic outlook remains bright, bolstering bets on further Fed rate hikes this year. Speaking before Congress, Powell said the Fed remains on track to gradually raise rates to keep the economy stable amid strengthening growth and inflation. Powell also said that his personal outlook for the economy has strengthened since December. The remarks bolstered expectations that the US central bank may deliver four rate increases this year, rather than the three it had earlier signaled.