BEIJING (AP) — European stocks opened lower Thursday while Asian markets gained after the Federal Reserve chairman said a recession is possible as the U.S. central bank raises interest rates to cool surging inflation.
London and Frankfurt declined. Shanghai, Tokyo and Hong Kong closed higher. Oil prices fell more than $2 per barrel to near $100.
Wall Street futures were lower, pointing to a possible second day of declines after Jerome Powell said Wednesday that a recession was “certainly a possibility” as the U.S. central bank tries to rein in inflation that is running at a four-decade high.
“The market now accepts recession is a risk, having been in total denial,” said Michael Every of Rabobank in a report.
In early trading, the FTSE 100 in London fell 0.6% to 7,049.04 and the DAX in Frankfurt sank 1% to 13,009.69. The CAC 40 in Paris lost 0.8% to 5,869.49.
On Wall Street, the future for the benchmark S&P 500 index was off less than 0.1% and that for the Dow Jones Industrial Average was down 0.2%.