German economy suffered a sharp loss of momentum at the end of the second quarter. corresponding figures for France also showed weaker activity. Global markets fell on Thursday as investors worried that further rises in interest rates to quell decades-high inflation would tip economies into recession. Register now for FREE unlimited access to Reuters.

U.S. Treasury yields eased after Federal Reserve Chair Jerome Powell underlined the central bank's commitment to cutting inflation at all costs. Powell acknowledged a recession was "certainly a possibility" Prices of copper and crude oil sank on prospects of less demand for fuel and building materials as consumers limit spending.

The MSCI all-country share index (.MIWD00000PUS) was down 0.35%, adding to its slide of more than 20% for the year. A Reuters poll showed the Fed is expected to deliver another 75-basis-point interest rate hike in July.

Both Nasdaq futures and S&P500 futures eased about 0.4%. "We are seeing a little bit of lower yields, a bit of haven buying," said Michael Hewson. Powell is set to give his second day of congressional testimony later on Thursday.
Tap to copy the Short Url to this post: 
One-Stop Business News. Free to Use →