European Markets Set to Fall After Fed Hints at Fewer Rate
European markets are set to fall at the open on Thursday, following global markets that have plunged after the U.S. Federal Reserve signaled yesterday that more interest rate cuts are on the way.
The U.K.’s FTSE 100 is expected to open 84 points lower at 8,105, Germany’s DAX is down 265 points at 19,993, France’s CAC is down 105 points at 7,284 and Italy’s FTSE MIB is down 507 points at 33,876, according to data from IG.
The lower opening anticipated for Europe follows Wednesday’s selloff on Wall Street after the Fed, which cut its overnight lending rate by 25 basis points to a target range of 4.25% to 4.5%, signaled there would likely be only two rate cuts in 2025, instead of the four cuts indicated in its previous forecast.
"We moved pretty quickly to get here, and I think going forward we're obviously moving slower," Fed Chair Jerome Powell said at a post-meeting press conference.
The comments sparked panic on Wall Street, with U.S. stocks falling as bullish market sentiment took a hit. Overnight, Asia-Pacific markets and currencies also fell.
There's more central bank action in Europe on Thursday with monetary policy decisions due from the Bank of England and Norges Bank, Norway's central bank.
Investors will also be watching European new passenger car registrations, German Gfk consumer confidence figures and Spanish trade data to gauge the region's economic health.
Source: cnbc
