European markets fell sharply on Thursday, followed by global stock markets, after the Federal Reserve signaled a smaller rate cut yesterday.
At 9:36 a.m. London time, the pan-European Stoxx 600 index fell about 1.16%, with all sectors in negative territory.
Major regional stock markets also fell, including Germany’s German DAX Indexfrench CAC 40 and British FTSE 100 All retreat.
On Wednesday, the Federal Reserve lowered its overnight borrowing rate by 25 basis points to a target range of 4.25% to 4.5%, suggesting that there may be only two rate cuts, followed by a sell-off on Wall Street, and Europe is expected to open lower. .
“We got there very quickly, but I think obviously our progress will slow down in the future,” Fed Chairman Jerome Powell said at a post-meeting press conference.
This statement triggered panic on Wall Street, bullish sentiment was hit, and U.S. stocks plummeted. Overnight, Asia-Pacific markets and currencies also fell.
The central bank made further decisions on Thursday, with the Riksbank announcing a 25 basis point interest rate cut. Meanwhile, Norges Bank kept its own policy rate unchanged but signaled it may start cutting interest rates in March 2025.
The Bank of England will also review the next steps for monetary policy later in the day.
—CNBC’s Jeff Cox contributed to this market report
About The Author
