European markets open lower amid global sell-off
Istanbul, August 2 (Hibya) - European stocks opened lower on Friday, extending losses amid a global downturn as weak U.S. economic data sparked fears of a recession. The regional Stoxx 600 index was down 1.3 percent at 8:14 a.m., with financial services leading losses, down 2.6 percent.
Global markets have been pulled lower by a flurry of central bank action — with the Bank of England cutting interest rates for the first time since 2020, the U.S. Federal Reserve holding rates and the Bank of Japan raising them this week, and shaky corporate earnings and data releases.
The Stoxx 600 suffered its worst session since the middle of June on Thursday, once again weighed down by financials as French bank Societe Generale downgraded its outlook and the BOE voted to reduce rates.
The Thursday decision took the British central bank’s key interest rate from 5.25 percent to 5 percent, following a narrow 5-4 vote among policymakers. Markets had not been fully convinced that the BOE would take the step.
Asia-Pacific markets logged steep losses Friday, with Japan’s benchmark indexes tanking as much as 5 percent.
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