European stocks and precious metals markets were affected today, Wednesday, by the future steps of the US Central Bank, in addition to the decline in the share of the “Adidas” sportswear company, after announcing plans to reduce its annual dividends, as the European “STOXX 600” index fell by 0.3 percent, reaching its lowest level. Within a week, after recording its largest daily decline in nearly two weeks yesterday, Tuesday, and after Federal Reserve Chairman Jerome Powell said during a hearing before the Senate Banking Committee that “the central bank may need to raise interest rates more than expected, and it is ready to act.” steps to control inflation.
Meanwhile, Adidas shares fell 2 percent after the German sportswear maker said it plans to cut its annual dividend to 0.70 euros ($0.7374) per share, and Symrise shares fell about 4 percent to push the European chemical sector. To decline, as the German company manufacturing flavors and fragrances expected a profit margin for 2023 that was slightly lower than market expectations, due to the high cost.
The euro area achieves “zero growth”
Meanwhile, the European Union’s statistics office (Eurostat) said that the eurozone did not record any economic growth on a quarterly basis during the last three months of 2022, in a slight downward revision of GDP and employment data, yet employment data remained strong.
Eurostat added, in a statement, that “the growth of the eurozone economy declined to zero during the fourth quarter compared to the third quarter and 1.8 percent year on year, compared to expectations for growth of 0.1 percent and 1.9 percent, respectively, published on February 14.” ) the past.
Greece, Malta and Cyprus recorded quarterly growth of more than 1 percent, with the economies of Germany, Estonia, Italy and Lithuania declining.
“Public spending contributed by about 0.2 percentage points, changes in inventories contributed by 0.1 percentage points, and net trade by about 1.0 percentage points,” Eurostat said.
Eurostat also revised employment growth data in the eurozone downward to 0.3 percent on a quarterly basis from 0.4 percent during the previous forecast, and growth achieved on an annual basis expectations at 1.5 percent.
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In addition, today’s data showed that German retail sales unexpectedly decreased in January by 0.3 percent compared to last month, as the Federal Statistical Office in Germany said that “industrial production in the country rose more than expected in January, up 3.5 percent.” for the previous month.
In New York, US stock indices opened slightly higher today, after a wave of selling during the last session, and as investors await more statements from Federal Reserve Chairman Jerome Powell and job data.
The Dow Jones Industrial Average rose 15.62 points, or 0.05 percent, to 32,872.08 points at the opening, while the “Standard & Poor’s 500” index opened, up 1.18 points, or 0.03 percent, to record 3,987.55 points, and the “Nasdaq” composite index increased by 22.75 points, or 0.20. percent to 11553.09 points at the opening.
The Japanese index reaches 28,444 points
In East Asia, the Japanese Nikkei index rose to its highest level in three and a half months for the fourth consecutive session, as expectations regarding export companies were supported by the decline of the yen.
Retail stocks also rose on optimism about the return of high-spending Chinese tourists after Japan reopened its borders this month.
The Nikkei index ended the session up 0.48 percent to 28,444.19 points, after it continued its gains strongly during afternoon trading, touching the level of 28,469.41 points just minutes before closing, a level it had not recorded since November 24.
The index has risen by about 3.5 percent since last Thursday, and the broader Topix index rose 0.3 percent to 2051.21 points, touching the level of 2053.01 points for the first time since November 2021.
Gold continues to decline
In the precious metals markets, gold prices fell to their lowest level in a week after the statements of Federal Reserve Chairman Jerome Powell as well, so that gold fell by 0.1 percent during spot trading, to 1812.44 dollars an ounce (ounce), and US gold futures fell 0.2 percent to 1816.50. dollar.
With regard to other precious metals, silver fell during spot trading 0.1 percent to 20.03 dollars an ounce, while platinum rose 0.8 percent to 936.72 dollars and palladium 0.3 percent to 1391.40 dollars.