European stocks fell on Friday as markets continued to try and make sense of the historic shift on inflation announced by US Federal Reserve chair Jerome Powell.
would launch a new monetary policy framework that will likely see interest rates in the US remain low for longer.
The Federal Reserve will now tolerate inflation “moderately” above its 2% target, Powell said, noting that persistently low inflation in the US over the last eight years has caused a series of economic problems.
^STOXX) fell by around 0.8%, while London’s FTSE 100 (^FTSE) fell by around 0.5%.
^GDAXI) fell by around 0.9% after a steep fall in consumer sentiment in August, while France’s CAC 40 (^FCHI) was down by around 0.8%.
The declines in Europe followed a broadly positive session in Asia.
^SSEC) rose by 1.6%, while the Hang Seng (^HSI) closed 1.4% in the green in Hong Kong.
^N225) fell by 1.4% after the country’s long-serving prime minister, Shinzo Abe, said he would resign due to ill health.
^KOSPI) in South Korea climbed by around 0.4%, while Australia’s ASX 200 (^AXJO) fell by more than 0.8%.
try and nudge inflation higher.
ES=F), were up by more 0.1%, putting the index on track for its seventh straight day of gains. Dow Jones Industrial Average futures (YM=F) rose similarly.
NQ=F), which snapped its five-day winning streak on Thursday, fell marginally.