European stocks plunged and US equity futures fell on Thursday, with traders in Europe getting their first chance to respond to the Fed’s decision and cautious forecasts about the world’s top economy.
The Stoxx Europe 600 SXXP,
It lost 1%, and the major regional indices, the German DAX,
French CAC 40 PX1,
And Britain FTSE 100 UKX,
Similar declines were recorded.
Futures on the Dow Jones Industrial Average YM00,
It fell 359 points after a slight rise in the leading DJIA stock.
Wednesday. High-Tech Nasdaq 100 NQ00 Futures,
The Federal Reserve on Wednesday, after the European markets closed, It said it was planning to keep interest rates near zero until at least 2024Also, he said, bond purchases will be made to help boost accommodative market conditions and not just market performance. President Jerome Powell gave a cautious look.
“All in all, the partial changes in the Fed’s communications indicate that the committee is comfortable with current market conditions and the potential path to recovery.” Bill Divine, chief economist at Dutch bank ABN Amro, said, “If conditions worsen, the Fed has left itself room to consolidate. Current routing. “
“Markets need more time to digest the news because the truth is that the Fed’s message was not close enough to be hawkish,” added Naeem Aslam, chief market analyst at Ava Trade. However, if we learn anything from the previous one [quantitative easing programs], Market participants become nervous as the Fed begins to roll back its asset-purchase program. On this front, we do not have any clear and specific timetable. “
The Bank of England is also making a decision on interest rates, and is not expected to take dramatic action.
European car manufacturers including Renault RNO,
And Volkswagen VOW3,
It declined after data showed that new car registrations fell 18.9% in August and 5.7% in July. The European Association of Automobile Manufacturers said German registrations were down 20% and French registrations fell 19.8%.
Next NXT UK clothing retailer,
It rose 2%. In the wake of the positive reports from Inditex ITX,
And H&M HM.B,
Next raised its earnings projections for the fiscal year ending in January, and is now seeing pretax profits of £ 300m, up from its previous forecast of £ 195m. Next said sales held up much better than expected, citing its online business that had already provided more than half of revenue before the shutdown, the strength of its home business, kidswear, sleepwear and sportswear, and its out-of-town stores. .
The mall operator company plunged 6% after announcing a capital increase of 3.5 billion euros, as well as a plan to reduce dividends and dispose of 4 billion euros in assets by the end of 2021.
German financial leasing company surged 6% after falling 40% on Wednesday. Grenke said he strongly rejects accusations of accounting fraud made by a short seller, Viceroy Research, and said there was a credit balance of € 761 million in the German Bundesbank on Tuesday.