EUROPE’S stocks opened lower today before an expected rate hike from the European Central Bank, after the US Federal Reserve lifted borrowing costs and indicated it would not cut anytime soon.

London’s benchmark FTSE 100 index lost 0.5% to 7,753.16 points compared with the closing level yesterday.

In the eurozone, Frankfurt’s DAX index shed 0.7% to 15,701.88 points and the Paris CAC 40 dropped 0.8% to 7,346.12.

“Worries are swirling that persistently high interest rates could be like a sledgehammer descending on the US economy, to try and crack the nut of stubborn inflation,” Hargreaves Lansdown analyst Susannah Streeter said.

“Focus is now switching to the European Central Bank decision later today with a 0.25 (basis point) hike… expected as eurozone economies grapple with stubborn inflation,” she said. – AFP, May 4, 2023.