Asia stocks lower after Powell comments, HK and China closed
European stocks set to open lower
All eyes on Bank of England policy decision
Markets split on 25 bps or 50 bps hike

SINGAPORE, June 22 Reuters Asian shares edged lower on Thursday after Federal Reserve Chair Jerome Powell stuck to his recent hawkish tone on the bank39;s likely interest rate path, while the focus switches to the Bank of England39; policy decision later in the day.

Futures indicated stocks in Europe were set to open deep in red, with Eurostoxx 50 futures down 0.51, German DAX futures down 0.55 and FTSE futures down 0.63.

MSCI39;s broadest index of AsiaPacific shares outside Japan was 0.24 lower at 521.81, set for a fourth straight day of losses and on course to snap its threeweek winning run. The index is down around 2.7 for the week, the worst since early March.

Last week, the Fed held its benchmark interest rate steady at between 5 and 5.25, but officials projected rates will have to increase another half percentage point by year39;s end to tame inflation.

Powell in his remarks to lawmakers in Washington said the outlook for two further 25basispoint bps rate increases are a pretty good guess of where the central bank is heading if the economy continues in its current direction.

Markets, though, remain unconvinced, pricing in a 72 probability of a 25 bps hike next month, but no further hikes after that, according to the CME FedWatch tool.

Kevin Cummins, chief economist at NatWest…