European shares fall on US Fed's grim view on recovery
- 20 Aug 2020
European stocks were hit by a wave of selling in global equity markets on Thursday after the U.S. Federal Reserve signalled a long and difficult path of recovery for the world's largest economy.
The pan-European STOXX 600 index fell 1.2% by 0712 GMT, with miners slumping 2.7% due to lower metal prices.
Other economically sensitive sectors such as banks and automakers and oil and gas dropped between 1.6% and 1.9%.
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Chilean miner Antofagasta's shares fell 4.3% after it posted a 22.4% plunge in first-half core earnings on lower copper sales, but said it would pay an interim dividend.
The losses were broad-based, with Wall Street indexes retreating from all-time highs on Wednesday after the Fed's minutes from its latest policy meeting showed policymakers concerned that an economic recovery would need stimulus measures for a far longer period.
Among notable gainers, Intercontinental Hotels Group jumped 2.6% and France's Accor gained 2.0% after a French newspaper reported the hotel operators examined a merger.
Reuters
