By Obinna Uballa
In an era of growing global anxieties, British Banks stocks have tumbled amid concerns over a possible tax squeeze.
This development saw NatWest dropped 4.7%, Lloyds 3.7%, and Barclays 3.4% after the Financial Times reported that U.K. bank executives fear Finance Minister Rachel Reeves could impose measures such as a profit surcharge to strengthen public finances.
In the U.S., attention is reportedly the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure. The release follows a speech by Fed Reserve Bank Chair Jerome Powell last week that investors interpreted as dovish, underlying expectations of a likely September rate cut. Fed funds futures put the odds of a cut at about 85%, according to CME’s FedWatch tool.
Despite Friday’s weakness, the Stoxx 600 remains on track to close August with a 1.4% monthly gain, marking its first back-to-back positive months this year, say analysts.
Elsewhere, spirits maker Remy Cointreau said it now expects U.S. tariffs to cut €20 million ($23 million) from operating profit, down from an earlier €35 million estimate, after Washington and Brussels struck a deal capping baseline duties at 15%.
Recall that the EU on Thursday had officially proposed scrapping tariffs on U.S. industrial goods, a key U.S. condition for reducing levies on European automobiles.
Meanwhile, U.S. stock futures were flat and Asia-Pacific markets traded mixed amid a flurry of economic releases.
…With additional reports from CNBC
