European stocks respond to Fed, BOJ, BOE meetings

European stocks respond to Fed, BOJ, BOE meetings

European stocks fell on Thursday morning as investors around the world reacted to the recent U.S. Federal Reserve meeting.

Pan-european Stoxx 600 It fell 0.8% in initial trading and the bank fell 1.8%, pushing all sectors and major stock markets in the red.

European markets are: Their response in Asia and USA It went down as traders digested the Federal Reserve’s promise to keep interest rates low over the next few years.

Members of the Federal Open Market Committee pointed out that US accommodation rates could be sustained. Fixed at zero bound by 2023 The central bank is trying to spark inflation. In a statement, the Commission said in a statement, “As inflation continues to fall below its long-term target, the Commission will aim to achieve inflation above 2% over time so that inflation averages 2% over time.”

In general, the outlook for low interest rates over the long term promotes stock buying. But not on Wednesday. Both the S&P 500 and Nasdaq finished low and the Dow finished well at the highs.

Meanwhile, in Asia, the Bank of Japan held its monetary policy stable on Thursday. The BoJ said in a monetary policy statement that the Japanese economy has begun to recover, but remains in a “serious situation” due to the impact of the coronavirus pandemic at home and abroad.

In Europe, investors will be watching the Bank of England policy guidance, which also meets on Thursday. The bank’s currency stance today is expected to remain unchanged.

In terms of individual stock price behavior, IG Group’s stock price rose more than 6% in initial trading after the online trading platform recorded a surge in sales in the first quarter of fiscal 2021. Grenke climbed more than 9%, leading the Stoxx 600. It has halted the massive losses arising from the alleged fraud by short-seller Vice Roy Research, which was wildly denied by the German corporate bank.

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On the other end of the European Blue Chip Index, shopping mall operator URW fell 6.7% on rights issues of 3.5 billion euros ($4.1 billion).

-CNBC’s Eustance Huang and Fred Imbert contributed to reporting this story.

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