Japanese stocks fell sharply on Wednesday. The Nikkei 225 plunged 4.0 percent after the yen touched a six-week high against the US dollar.
Stocks elsewhere also mostly fell on Wednesday, although by smaller amounts. The S&P 500 fell 0.4 percent while the STOXX Europe 600 fell 0.2 percent.
Bank of England Governor Mark Carney’s attempt on Wednesday to restrain expectations of higher interest rates seemed to have had little effect on markets.
“We're not at escape velocity right now,” he said at his first BoE news conference. “This remains the slowest recovery in output on record.”
“The forward guidance contained in the inflation report was broadly expected but what was unexpected were the get-out clauses,” said Lena Komileva at consultancy G+ Economics. “The BoE's pre-commitment to keeping rates at a record low is not as conclusive as it first appeared.”
Indeed, economic data from the UK and the rest of Europe have become more positive recently. On Wednesday, Germany continued that trend by reporting that its industrial production jumped 2.4 percent in June after a 0.8 percent decline in May.
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