European equities drift higher at open

AFP , Wednesday 5 Apr 2023

European equities drifted higher Wednesday at the open after a mixed Asian session as investors dwelled on US recession concerns.

A man walks into the Reserve Bank of New Zealand building in Wellington, Wednesday, April 5, 2023. AP


London's benchmark FTSE 100 index rose 0.3 percent to 7,654.98 points compared with the closing level on Tuesday.

In the eurozone, Frankfurt's DAX index added 0.1 percent to 15,622.36 points and the Paris CAC 40 also won 0.1 percent to 7,354.53.

"Markets are drifting as investor thoughts start to turn towards the scale of severity, as the likelihood of a recession later in the year in the US increases," said Richard Hunter, head of markets at trading firm Interactive Investor.

Wall Street retreated Tuesday as news of a softening in the US jobs market pointed to a slowing economy and fuelled recession fears.

Traders also digested news that the central bank of New Zealand has become the latest to hike interest rates sharply in a bid to tackle soaring inflation.

The Reserve Bank of New Zealand lifted its key official cash rate by a larger-than-expected 50 basis points to 5.25 percent.

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