European stock markets open slightly lower awaiting the Fed’s pronouncement

The European stock markets opened this Wednesday, March 22, with slight drops, in a scenario that specialists consider transitional, since the United States Federal Reserve will announce the decisions adopted regarding interest rates.

Along these lines, the IBEX 35 fell 0.21% at the opening to stand at 9,030.4 points, the dax german falls 0.12% in the 15,176, the FTSE 100 London left 0.23% at 7,519, the ACC 40 French falls 0.15% in the 7,102 and the Italian FTSE MIB subtract 0.19% to 24,484. For its part, the EURO STOXX 50 cut 0.21% to 4,171.64 points.

According to data from CME Group, federal funds futures show that investors give a probability of about 83% that the central bank will raise interest rates by 0.25 percentage points for the second time in a row.

On the other hand, the behavior of the banks will continue to be the focus of attention of the investors who have recovered a certain calm, after the words of the president of the ECB, Christine Lagarde, who assured that there was enough liquidity for the banks if necessary.

With respect to inflation, yesterday, Lagarde maintained that the ECB does not commit ex ante to interest rates, since it is always necessary to know the data on economic behavior.

“Neither are we committed to raising more, nor have we finished with the increases in interest rates”said.

The ECB President stressed that “although headline inflation is likely to fall sharply this year on lower energy prices and reduced supply bottlenecks”, core inflation, which discounts energy and food, is strong. Today Lagarde will give a lecture again.