European stocks fell on Thursday after the Federal Reserve warned that it expected there to be a “long road” to economic recovery in the US, fueling fears about a protracted return to growth in the global economy.
The central bank left interest rates steady at near-zero levels, projecting elevated US unemployment for years and a 6.5% fall-off in US economic output in 2020.
The pan-European STOXX 600 index (^STOXX) fell by around 2.5%, while London’s FTSE 100 (^FTSE) was down by around 2.4%.
Germany’s DAX (^GDAXI) declined by around 2.6%, while France’s CAC 40 (^FCHI) was 2.9% in the red.
“Last night’s Fed meeting turned out to be every bit as dovish as was expected, with the US central bank painting a fairly subdued outlook for the US economy,” said Michael Hewson, the chief market analyst at CMC Markets UK.
READ MORE: No rate hikes from US Federal Reserve likely through 2022
“While the main focus was on the downgrades to its economic predictions, and the length of the recovery, what was particularly notable was [Jerome Powell’s] comments on the jobs market, inequality and financial markets,” Hewson said.
“He said that inequality was likely to continue for the next four decades, and that millions of people could well be out of work for some time.”
The declines in Europe followed sharp losses for stocks in Asia.
China’s SSE Composite Index (^SSEC) fell by 0.78% on Thursday, while the Hang Seng (^HSI) was down by 2% in Hong Kong at market close.
READ MORE: British Gas owner Centrica axes 5,000 staff in manager cull
Japan’s Nikkei (^N225) closed more than 2.8% in the red, in its worst decline since the beginning of May.
The KOSPI Composite Index (^KOSPI) in South Korea fell by around 0.86%, while Australia’s ASX 200 (^AXJO) was down by more than 3%, its worst performance since February.
Futures were pointing to a sharply negative open for US stocks on Thursday.
S&P 500 futures (ES=F) fell by around 1.8%, while Dow Jones Industrial Average futures (YM=F) were down by almost 2.2%. Nasdaq futures (NQ=F), meanwhile, were down by more than 1.4%.
Business - Latest - Google News
June 11, 2020 at 02:54PM
https://ift.tt/3feWY5U
Coronavirus: European stocks fall after US Fed predicts 'long road' to recovery - Yahoo Finance
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "Coronavirus: European stocks fall after US Fed predicts 'long road' to recovery - Yahoo Finance"
Post a Comment