European stocks open lower on Fed policy decision
European stocks traded lower earlier on Thursday after investor sentiment dampened due to the U.S. Federal Reserve’s recent decision to not add further stimulus packages.
Germany’s DAX futures lost 0.7% at 2:05 AM ET (0605 GMT), while France’s CAC futures fell by 0.6%. FTSE futures in the U.K. lost 1.2%.
In conclusion to its two-day policy meeting, the Federal Reserve continued to keep its interest rates unchanged while signaling that it may remain so until 2023 as the economy recovers from the COVID-19 pandemic.
However, while the central bank had already taken a more tolerant stance on inflation, it did not offer further details on its approach to monthly bond purchases, which disappointing some investors hoping for further largesse.
Meanwhile, the Bank of Japan announced that it would also keep its interest rates, which were last set at -0.1% while leaving its asset purchases unchanged.
Investors are now waiting for the conclusion for the Bank of England’s latest policy meeting, which would be announced at 0700 AM ET (1100 GMT).