Stock, futures slip after Powell’s hawkish turn

Stock, futures slip after Powell’s hawkish turn

Stocks















Bloomberg

Stocks in Europe struggled to build on a three-day rally as traders assessed hawkish comments from Federal Reserve Chair Jerome Powell and the latest data on inflation and economic activity.

The Stoxx Europe 600 index edged lower, with ABN Amro slumping almost 10% after the Dutch lender reported first-quarter results burdened by rising costs. The energy sector outperformed as Siemens Gamesa Renewable Energy SA surged after Siemens Energy AG said it may offer to buy the shares it doesn’t own in its Spanish unit.

US futures dipped after the S&P 500 added 2% in a risk rebound. Treasury yields ticked lower and the dollar snapped a three-day losing streak after Powell said the Fed “won’t hesitate” to tighten policy beyond neutral to curb high inflation. MSCI Inc’s Asia-Pacific equity index rises for a fourth day, the longest such streak since February. Oil rises towards $114 a barrel and Bitcoin slipped below $30,000.

In what’s seen as his most hawkish remarks to date, Powell said that the US central bank will raise interest rates until there is “clear and convincing” evidence that inflation is in retreat.

“We’ll have this kind