European markets set for slightly lower open as Fed hike fears resurface

LONDON — European markets are set to open slightly lower on Monday as fears of more aggressive interest rate hikes from the Federal Reserve return to the fore.

Britain’s FTSE 100 is seen around 17 points lower at 7,533, Germany’s DAX is set to slide by around 45 points to 13,500 and France’s CAC 40 is expected to drop around 19 points to 6,477.

Shares in Asia-Pacific were mixed on Monday as caution prevailed, though Chinese markets rose after China’s central bank cut its benchmark lending rates.

U.S. stock futures fell in early premarket trade after the S&P 500 snapped a four-week winning streak on Friday, as Wall Street looks ahead to Fed Chairman Jerome Powell’s Friday comments on inflation at the central bank’s annual Jackson Hole economic symposium.

“We expect the market to approach the Fed’s Jackson Hole meeting fearing a hawkish message that could drive a sharp risk-off move. However, we think the message will be more nuanced, and possibly even reassuring,” said Steve Englander, head of global FX research and North America macro strategy at Standard Chartered.

“For the Fed, getting inflation down towards targets is non-negotiable. Chair Powell is likely to state that the Fed will raise rates as far as it takes, and for as long as it takes, to lower inflation.”

There are no major corporate earnings or economic data releases due out of Europe on Monday.

China trims lending rates again, one week after surprise cuts in key rates

China trimmed its key lending rates again on Monday, one week after it cut two interest rates in a surprise move.

The moves are seen as an attempt to revive credit demand and fire up the economy hurt by extended Covid lockdowns and property debt problems.

The People’s Bank of China cut its five-year loan prime rate by 15 basis points to 4.30% from 4.45%, and lowered its one-year loan prime rate by 5 basis points to 3.65%.

– Su-Lin Tan

Credit Suisse names new CFO and COO

Credit Suisse has named Dixit Joshi as its new chief financial officer from Oct. 1 and Francesca McDonagh as group chief operating officer from Sept. 19.

The latest top management reshuffle comes after the appointment of Ulrich Koerner as CEO last month, replacing Thomas Gottstein, as the embattled lender looks to overhaul its business model following a string of scandals and substantial quarterly losses.

Joshi has been group treasurer at Deutsche Bank for the last five years and replaces David Mathers, who is stepping down, while McDonagh was previously announced as CEO of the EMEA region at Credit Suisse.

– Elliot Smith

Source : CNBC