European Stock Futures Fell After Asia
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Following the Asian decline, European stock-index futures came tumbling down on speculation that the central banks will be hiking interest rates as hedge against inflation.
Credit Suisse Group and Societe Generale SA are likely going to plummet after an announcement coming from the US Federal Reserve regarding its resolution to do its utmost to put under control the inflationary surges.
The Stoxx 600 of Europe fell down 23 percent from the previous year’s six-year high on hunch that credit-related losses nearing $400 billion, surging oil and fuel costs as well as an inflation rate that’s swollen out of proportion will erode earnings.
Credit Suisse’s American depositary receipts fell to 0.7 percent lower in the United States compared to the close in Zurich. ADRs of Societe Generale, the second-largest French bank, closed lower at 1.3 percent than at closing in Paris.
Euro region benchmark Dow Jones Euro Stoxx 50 Futures came down 35, or 0.9 percent, to 3,567 as UK’s FTSE 100 Index is under serious threat and is expected to drop to 21.
“The weakness we saw spilling through overnight looks likely to come through into the European session,” said chief market strategist Tom Hougaard, City Index Ltd., London.
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