UK markets close in 4 hours 43 minutes
  • FTSE 100

    7,149.95
    +124.48 (+1.77%)
     
  • FTSE 250

    18,600.62
    +285.31 (+1.56%)
     
  • AIM

    871.79
    +4.33 (+0.50%)
     
  • GBP/EUR

    1.1690
    +0.0052 (+0.44%)
     
  • GBP/USD

    1.1925
    -0.0027 (-0.22%)
     
  • BTC-GBP

    16,866.41
    +239.03 (+1.44%)
     
  • CMC Crypto 200

    436.24
    -3.79 (-0.86%)
     
  • S&P 500

    3,831.39
    +6.06 (+0.16%)
     
  • DOW

    30,967.82
    -129.44 (-0.42%)
     
  • CRUDE OIL

    99.81
    +0.31 (+0.31%)
     
  • GOLD FUTURES

    1,760.20
    -3.70 (-0.21%)
     
  • NIKKEI 225

    26,107.65
    -315.82 (-1.20%)
     
  • HANG SENG

    21,586.66
    -266.41 (-1.22%)
     
  • DAX

    12,607.01
    +205.81 (+1.66%)
     
  • CAC 40

    5,901.60
    +106.64 (+1.84%)
     

French Finance Minister: rising U.S. bond yields show that 'era of cost-free money is over'

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
Opening of the Eurosatory land and airland defence and security trade fair, at the Paris-Nord Villepinte Exhibition Centre in Villepinte
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

PARIS (Reuters) - French Finance Minister Bruno Le Maire told France 2 television on Tuesday that the rise in U.S. bond yields showed that the "era of cost-free money" was over.

Le Maire added it wold cost France several billion euros to pay back its debt to the market, which showed that importance of sticking to a "balanced and coherent" fiscal policy.

U.S. equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. [.N]

Last week, the European Central Bank (ECB) ended a long-running stimulus scheme and said it would deliver next month its first interest rate hike since 2011, followed by a potentially larger move in September.

The ECB, facing a euro zone inflation at a record-high of 8.1% and which is still rising, now fears that price growth is broadening out and could morph into a hard-to-break wage-price spiral, heralding a new era of stubbornly higher prices.

Data published last month showed the French economy unexpectedly shrank in the first quarter as consumers struggled to cope with surging inflation that reached a record-high rate of 5.8% over 12 months in May.

Nevertheless, Le Maire has said he expects France to have positive economic growth for 2022.

(Reporting by Tassilo Hummel; Editing by Sudip Kar-Gupta)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting