FazzNoth Posted October 7, 2022 Posted October 7, 2022 European stocks opened mixed on Friday as traders continue to digest the outlook for the global economy. In London, the FTSE 100 (^FTSE) was flat after the opening bell, a day after Fitch became the latest ratings agency to lower the credit outlook for British government debt to "negative" from "stable". The CAC 40 (^FCHI) was up 0.1% in Paris, and in Frankfurt the DAX (^GDAXI) pushed 0.1% lower. Britain's higher borrowing costs appear to have had an impact on the property market after Halifax said average house prices declined by 0.1% in September. Annual growth fell to 9.9% from 11.4% in August. Meanwhile, the Bank of England (BoE) has said that its £65bn ($73bn) intervention in the gilt market last week saved the UK from being on the brink of a financial crisis. A letter from Sir Jon Cunliffe, deputy governor of the BoE, highlighted that there was fear of “severe disruption of core funding markets and consequent widespread financial instability.” Cunliffe added that pension funds would have been forced to dump £50bn worth in government bonds into a chaotic market. Across the Atlantic, Wall Street indices lost steam, closing in the red on Thursday ahead of the latest US jobs data as recession fears escalate. The benchmark S&P 500 (^GSPC) lost 1%, the tech-heavy Nasdaq (^IXIC) dipped 0.7%, while the Dow Jones (^DJI) declined 1.2% on the day. Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "These slips are squarely the result of gathering recessionary fears, as markets set their sights on US jobs dater due later on. "The reason this data set is a big one, arguably the biggest since markets began to unravel, is because the data will show if the Fed’s enthusiastic interest rate hikes are now being felt in the jobs market. Today’s news will shape the Federal Reserve’s monetary decision in November. "As a leading economic indicator, jobs data is a crucial barometer for the health, and future movements within the economy. While things on this front at least have looked stronger than feared over recent months, the concern is that the wheels are about to come off." Asian markets closed lower overnight as a global rally ran out of steam. The Hang Seng (^HSI) lead the losses, closing down 1.3% in Hong Kong and the Nikkei (^N225) fell 0.7% in Tokyo. The Shanghai Composite (000001.SS) remained closed due to a holiday. https://uk.finance.yahoo.com/news/ftse-100-traders-outlook-economy-075945445.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAADDPXLerDMHjBMqw8NvAkbMepCeg-sPHeKuhALGNMixczvEAfemklLtIY9qLvOr7TY-mIch_oVKu-YfhVo8m5UBSeDZWSCa3uYV7DzNsg4j6RwfEULR8rC3HhwPfesV-7EMbMPKlDxNexRCgsIuqYFeCOlTu7Xx_dU1XhYltrcUZ
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