European markets head for lower open as investors weigh economic outlook

Holly Ellyatt

European markets are heading for a lower open Thursday as investors digested more comments from U.S. Federal Reserve Chairman Jerome Powell. 

Powell reiterated his warning message to lawmakers that the central bank may raise interest rates higher than previously anticipated. However, he said he hasn’t made up his mind about what the central bank will do regarding interest rates when it meets later in March.

U.S. stock futures were flat on Wednesday night, while Asia-Pacific shares were mixed on Thursday as the Bank of Japan kicked off its two-day monetary policy meeting, with investors looking out for any policy changes that could accompany BOJ governor Haruhiko Kuroda’s final meeting.

CNBC Pro: Bonds yields are soaring. But this strategist says she’s still a fan of these ‘compelling’ stocks

Higher bond yields are usually bad news for stock investors. But that’s not the case for these stocks, given their innovative business models, strategist Amy Kong says.

“We continue to be constructive on stocks relative to bonds and cash but recognize risks have escalated,” Kong, who is chief investment officer at CI Barrett Private Wealth, told CNBC’s “Street Signs Asia” on Wednesday.

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China’s consumer inflation eases in February

China’s consumer price index for February came in at 1% year on year, coming off from an annual increase of 2.1% in January.

The figure is lower than Reuters’ forecast of a 1.9% increase. Prices of food, alcohol and tobacco increased by 2.1% year on year.

China’s producer price index for February declined 1.4% compared to a year ago, deepening a contraction of 0.8% in January.

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Markets are jittery now that fears that interest rates will stay higher for longer have been reignited.

Stocks tumbled on Tuesday and the 2-year Treasury yield jumped to its highest level since 2007 as Federal Reserve Chair Jerome Powell suggested that rates may need to go higher for longer.

How should investors trade in such an uncertain market? Here’s what BlackRock and other pros say.

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Major cryptos drop 2% following Silvergate shutdown

Major cryptocurrencies bitcoin and ether sank in early Asia trade after the central lender to the crypto industry, Silvergate Capital, said it will shutdown its operations.

“In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward,” the company said in a statement. Bankrupt crypto exchange FTX was a major Silvergate customer.

Bitcoin was down 2.31% to trade at $21,711.8 while Ether fell 2.15% to $1,532.98 according to CoinDesk data.

— Lee Ying Shan

European markets: Here are the opening calls

European markets are heading for a lower open on Thursday as investors gauge the regional and global economic outlook.

The U.K.’s FTSE 100 index is expected to open 24 points lower at 7,909, Germany’s DAX 27 points lower at 15,623, France’s CAC down 14 points at 7,316 and Italy’s FTSE MIB down 2 points at 27,902, according to data from IG.

Earnings come from Aviva, Domino’s Pizza, Hugo Boss and Deutsche Post.

— Holly Ellyatt

Source : cnbc