European stock and US stock futures came a day after Federal Reserve Chairman Jerome Powell told Congress that the central bank would continue raising interest rates to combat inflation and acknowledged that a recession was a “likelihood”. Thursday fell early.
The London Stock Exchange’s FTSE 100 was down more than 0.7% after markets opened on Thursday morning, while the Frankfurt Stock Exchange’s DAX index was down 1.27%.
The pan-European Stokes 600 index was down more than 1.1% an hour after the market opened.
Stock markets in Asia appeared largely unaffected, however, with Hong Kong’s Hang Seng index up 1.26%, while the Tokyo Stock Exchange’s Nikkei 225 was up 0.08% at market close on Thursday.
US stock futures were also down in premarket trading early Thursday, with the benchmark S&P 500 index down 0.2%, while the Dow Jones index dropped 0.36%.
Crude oil prices also tumbled, with global Brent crude futures falling more than 2% and falling below $110 a barrel.