European stock markets fall 2.8% after weak data from the euro zone and the new economic plan of the United Kingdom

European stock markets fall 2.8% after weak data from the euro zone and the new economic plan of the United Kingdom

European stocks fell sharply on Friday as investors digested a series of central bank decisions and a new UK economic plan.

The Stoxx 600 was down 2.8% in afternoon trading, with all sectors and major exchanges trading in the red.

Oil and gas reserves and basic resources fell the most, both down more than 4%.

Thursday’s market moves come after the UK government announced a series of tax cuts as the country braces for a recession. Sterling fell 1.8% against the dollar around midday to trade at $1.1048 on the news.

The Bank of England also raised rates by 50 basis points on Thursday, its seventh consecutive increase, saying it believed the UK economy was already in recession.

Also on Thursday, the Swiss National Bank raised its benchmark rate to 0.5%, a change that ends an era of negative rates in Europe.

The US Federal Reserve, meanwhile, raised another three-quarters of a percentage point on Wednesday, signaling that the increases will keep coming.

US stocks closed lower on Thursday, their third straight daily decline, and futures were also lower on Friday.

Meanwhile, Asian markets were in the red, with Australian stocks down 2%.

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