As a result of yesterday’s trading, European stock indices showed a sharp decline against the backdrop of tightening monetary policy by the central banks of the world. The composite index of the largest companies in the region Stoxx Europe 600 decreased by 1.79% and amounted to 399.76 points. The British stock index FTSE 100 fell by 1.08%, the German DAX – by 1.84%, the French CAC 40 – by 1.87%. The Italian FTSE MIB and the Spanish IBEX 35 lost 1.1% and 1.2% respectively. Shares in Finnish energy company Fortum Oyj, which owns Germany’s Uniper, rose 7.9% on news of the sale of a 56% stake in Uniper to the German government. On the eve of the company’s capitalization increased by 9.5%. The price of securities of the Swiss bank Credit Suisse Group AG fell by 5.5%. The British edition of the Financial Times, citing sources, said that the bank plans to split the investment banking division into three separate businesses and sell some profitable divisions. Shares in French hotel chain owner Accor SA tumbled 6.9% after JP Morgan downgraded the company’s rating to underweight from neutral, raising concerns that Accor could not return to pre-pandemic profitability. Investors yesterday assessed the results of the September meeting of the Federal Reserve System (FRS). The American Central Bank raised the interest rate on federal funds (federal funds rate) by 75 basis points, now its range is 3-3.25% per annum. The decision, taken unanimously by all 12 voting members of the FOMC, coincided with the forecasts of most economists and analysts. The Fed raised its base rate by 75 bp. for the third meeting in a row. It is now at its highest level since the 2008 financial crisis. At the same time, based on FRS estimates, by the end of 2022 the rate will reach 4.4% per annum. The Swiss Central Bank on Thursday announced a rate hike by 75 bp, to 0.5% per annum. The regulator is resorting to raising the rate for the second time in a row to combat high inflation: in June, the rate was raised by 50 bp to minus 0.25% per annum. Prior to this, the interest rate in Switzerland had been at minus 0.75% since 2015. The British Central Bank raised the rate by 50 basis points, to 2.25%, but three of the nine members of the Monetary Policy Committee voted for a sharper increase, by 75 b.p. The rate was increased following the results of the seventh meeting in a row, and the increase was 50 bp for the second meeting in a row. Source: FINMARKET.RU

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