The weekend was a disappointment for stock markets in Europe, with the aftermath of Wednesday’s Fed decision still reverberating, wiping out any prospect of gains in a week that saw new records for the DAX and the Stoxx600.

In what can only be described as choppy trading conditions, sentiment received a further blow this afternoon following comments from St. Louis Fed Chairman James Bullard, who said he was leaned toward a US rate hike in 2022, much earlier than Wednesday’s. “Points” of two by the end of 2023.

While Bullard may not be a voting member this year, he will be a voting member next year and, as such, his vote will count, further blurring the markets timeline as to when the Fed acts in response. to inflation problems.

This gave the US dollar a further boost and cut the ground for industrial metals, although oil prices have remained fairly resilient so far.

As a result, stock markets fell sharply as all sectors were crushed, with the FTSE100 slipping back to lows this month, and the DAX following suit, market confidence that the U.S. central bank would look into the concerns. regarding slightly higher average inflation, take a little swipe.

Tesco is among the biggest setbacks despite better than expected first quarter sales, and compared to some pretty tough comparisons, despite UK sales reaching over £ 10bn. This seems a rather odd reaction given the challenges, as well as the rising costs that the industry has been facing over the past 15 months. Investors may be disappointed that forecasts have remained unchanged despite such a strong performance in the first quarter, or that their expectations are unrealistic. Keep in mind that last year’s benchmarks were tough given that supermarket shelves were almost bare the day after the first lockdown, yet like-for-like sales were consistently higher.

Royal Dutch Shell and BP underperform despite oil prices resisting the strengthening of the US dollar, with both near the low of the FTSE100, while banks fell with rising short-term rates and falling long-term rates, flattening the bond curve, with Barclays being the least efficient.