European stock markets open with mixed performance

European stock markets began the day with a mixed performance. Following the opening, the Stoxx Europe 600 benchmark index is trading at 485 points with a 0.2 percent decline, while Germany's DAX 40 index is trading at 16,833 points with a 0.4 percent loss.

In the UK, the FTSE 100 index is at 7,637 points with a 0.1 percent gain, the MIB 30 index in Italy is at 30,660 points with a 0.1 percent gain, the IBEX 35 index in Spain is at 10,068 points with a 0.1 percent decline, and the CAC 40 index in France is at 7,657 points with a 0.3 percent loss.

The euro/dollar parity is currently trading at 1.0780, down 0.1 percent from the previous close.

Analysts stated that risk appetite in global equity markets has declined after US Federal Reserve (Fed) Chair Jerome Powell, speaking after the Fed kept its policy rate unchanged, signaled that it is too early to begin interest rate cuts in March. They noted that all eyes are now on the Bank of England (BoE) interest rate decision and the statements from BoE Governor Andrew Bailey today.

Yesterday, the Fed kept its policy rate unchanged at the 5.25-5.50 percent range, the highest level in 23 years, in line with expectations. During the press conference held after the announcement of the monetary policy decisions, Powell expressed that he does not believe it is likely to reach the level of confidence required for an interest rate cut by March.

Analysts recalled that market pricing almost certainly expects the BoE to keep interest rates steady, noting that there is a 71 percent probability that the bank will begin interest rate cuts in May.

Stating that in addition to the BoE interest rate decision, the Consumer Price Index (CPI) and unemployment rate in the Eurozone, as well as the manufacturing Purchasing Managers' Index (PMI) data to be released in Europe and the US, will be at the forefront today, analysts reminded that the Consumer Price Index (CPI) to be released in the Eurozone today is expected to rise by 2.7 percent annually in January, while annual inflation was 2.9 percent in December.

News Source: AA