Berliner Boersenzeitung - Stocks mixed as markets digest BoE rate hike, recession forecast

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Stocks mixed as markets digest BoE rate hike, recession forecast
Stocks mixed as markets digest BoE rate hike, recession forecast / Photo: Yui Mok - POOL/AFP/File

Stocks mixed as markets digest BoE rate hike, recession forecast

European stocks pushed slightly higher on Thursday as the Bank of England delivered its biggest interest rate hike in 27 years, while Wall Street equities were mixed ahead of key US jobs data.

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Although economists had anticipated the 0.50-percentage point rise, the UK central bank also grimly predicted the country would suffer a lengthy recession later in the year.

The rate hike mirrored aggressive monetary policy from the US Federal Reserve and the European Central Bank last month, as the world races to cool red-hot inflation that has been exacerbated by Russia's invasion of Ukraine.

Wall Street stocks finished mixed with the Dow and S&P 500 modestly lower, while the Nasdaq pushed higher.

The choppy session comes ahead of Friday's monthly employment report, expected to show US job growth slowed to just 250,000 jobs, while unemployment held steady at 3.6 percent.

The data will inform the Federal Reserve's plans ahead of its September 21 meeting, which is keeping investors on guard.

"Wall Street has heard enough from the Fed to know that we are stuck in wait-and-see mode for the next 48 days," said Oanda's Edward Moya.

The dollar -- which has risen over the last year -- declined ahead of the jobs data.

Oil prices fell again in the wake of the OPEC+ decision to slightly raise production, with the main US contract dropping back to levels not seen since before the war in Ukraine sent crude prices soaring.

Most Asian indices tracked the Wall Street rally the previous session fueled by healthy economic and earnings data, despite lingering concerns following US House Speaker Nancy Pelosi's visit to Taiwan that provoked an angry response from China.

Beijing has suspended a limited amount of cross-strait shipping, and on Thursday began its largest-ever military exercises encircling Taiwan that are expected to last for days.

Soon after, Taiwan's defense ministry said it was "preparing for war without seeking war".

Taipei stocks fell again on worries that the Chinese maneuvers would hit shipping lanes and flights into Taiwan.

- Key figures at around 2045 GMT -

New York - Dow: DOWN 0.3 percent at 32,726.82 (close)

New York - S&P 500: DOWN 0.1 percent at 4,151.94 (close)

New York - Nasdaq: UP 0.4 percent at 12,720.58 (close)

London - FTSE 100: FLAT at 7,448.06 (close)

Frankfurt - DAX: UP 0.6 percent at 13,662.68 (close)

Paris - CAC 40: UP 0.6 percent at 6,513.39 (close)

EURO STOXX 50: UP 0.6 percent at 3,754.60 (close)

Tokyo - Nikkei 225: UP 0.7 percent at 27,932.20 (close)

Hong Kong - Hang Seng Index: UP 2.1 percent at 20,174.04 (close)

Shanghai - Composite: UP 0.8 percent at 3,189.04 (close)

Euro/dollar: UP at $1.0248 from $1.0166 Wednesday

Pound/dollar: UP at $1.2166 from $1.2149

Euro/pound: UP at 84.21 pence from 83.63 pence

Dollar/yen: DOWN at 132.95 yen from 133.86 yen

Brent North Sea crude: DOWN 2.7 percent at $94.12 per barrel

West Texas Intermediate: DOWN 2.3 percent at $88.54 per barrel

burs-jmb/hs

(U.Gruber--BBZ)