European Markets Fall, UK and Norway Lift Rates, Swiss Inflation Eases

Bridgette Randall
03 Nov, 2022
Frankfurt

Market indexes in Europe also turned lower and the Bank of England lifted its key lending rate.

The central bank revised higher its lending rate by 75 basis points, the largest rate increase in 33 years, to 3.0%.

The Norwegian central bank lifted its key lending rate by 25 basis points to 2.5%. 

The Monetary and Financial Policy Committee revised its rate higher in an unanimous decision, according to the statement released by the Norges Bank Thursday. 

The central bank also hinted rates are likely to continue to go higher as consumer price inflation in September rose to a 34-year high to 6.9% from 6.5% in August. 

Bond yield rose following the global bond market sell-off after the U.S. rate hike.

The yield rose on 10-year German bunds to 2.24%, French bonds to 2.73%, the UK bonds to 3.48% and Italian bonds to 4.42%.  

The DAX index declined 1% to 13,130.19, the CAC-40 index dropped 0.5% to 6,243.28 and the FTSE 100 index jumped 0.6% to 7,188.63. 

The benchmark Swiss Market Index fell 95.64 points or 0.89% to 10,710.59 despite the larger-than-expected decline in inflation. 

Consumer price inflation in October fell to an annual rate of 3.0% from 3.3% pace in September, the Federal Statistics Office reported Thursday. 

The annual inflation rate was the lowest since May, but still above the 2% target set by the Swiss National Bank. 

AXA Group gained 1% after the French insurance group reported revenue in nine-month period increased to 78.4 billion euros and the company estimated preliminary gross claims and net of reinsurance of 0.4 billion euros of claims arising from Hurricane Ian,   

BMW fell 3% despite the German automaker reiterated its fiscal 2022 annual outlook. 

Solvay SA declined 0.4% after the Belgian chemical maker announced a joint venture with Mexico-based Orbia to manufacture battery materials in the United States.  

A week ago, Solvay lifted its fiscal 2022 organic operating earnings growth estimate to 28% from a year ago from the previous estimate range between 14% and 18% announced in July.