The Bank of England maintained interest rates at 4.5% on Thursday, amidst persistent inflation and escalating global uncertainties. European markets opened on a negative note on Friday, influenced by interest rate decisions from various banks and economic uncertainties. Britain’s FTSE 100 index fell slightly, while Germany’s DAX and France’s CAC 40 index also saw declines. The mixed rhetoric from the US Federal Reserve regarding interest rates has been difficult for markets to interpret, with implications for growth and inflation in the US. UK investors are also looking toward the upcoming Spring Statement for updates on government borrowing and defence spending. In Asia, Japan’s Nikkei closed lower due to strong inflation data, while China’s Shanghai Composite Index declined amid weak economic prospects. Hong Kong’s Hang Seng index saw significant losses, whereas Australia’s S&P/ASX 200 index rose slightly and South Korea’s Kospi inched up. US stocks were lacklustre on Thursday, following the Federal Reserve’s decision to lower its economic growth forecast and increase its inflation outlook. Accenture, Gartner, and Microchip Technology were among the biggest losers. In commodities, US and Brent crude oil prices saw slight increases, while gold dropped. Corporate earnings saw a decline for Nike, which faced drops in demand, especially in China, with its share price falling in pre-market trading. JD Wetherspoon Plc reported a revenue increase but saw a decline in profit before tax, leading to a significant drop in its share price on the London Stock Exchange.

Source: https://www.euronews.com/business/2025/03/21/european-markets-drop-following-week-of-interest-rate-decisions