European stocks skid from 1-month high as Fed underwhelms
- 17 Sep 2020
European stocks fell from a one-month closing high on Thursday after an underwhelming response to the US Federal Reserve's pledge to keep interest rates low for a prolonged period.
The pan-European STOXX 600 dropped 1.1% by 0710 GMT, on course to break its four-day winning streak.
The US central bank on Wednesday vowed to keep interest rates near zero until inflation is on track to overshoot the 2% target, as expected. However, Fed Chair Jerome Powell said an economic recovery is expected to slow, requiring continued support from further government spending.
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US tech stocks fell the most on Wednesday, while their European peers shed 1.6%. Banks, automakers and miners were the biggest sectoral decliners in Europe, down nearly 2%.
Carmakers Volkswagen, Renault and PSA Group fell between 2.5% and 3% after industry data showed new car sales fell by 17.6% in August.
Property firm Unibail-Rodamco-Westfield slumped 8.5% as it announced a 9 billion euro plan that includes capital raise, to boost its balance sheet.
Reuters
