European stocks seen lower after Fed dampens easing expectations

Markets are reacting to the Fed's first cut to its main interest rate since 2008, after Chairman Jerome Powell cited signs of a global slowdown, simmering U.S. trade tensions and persistent low inflation in the central bank's decision to lower borrowing costs by 25 basis points.

However, Powell suggested the cut was a "mid-cycle adjustment to policy" rather than the start of an aggressive monetary easing cycle, sending Wall Street lower. The Dow dropped 330 points in its worst day since May as traders reacted to the announcement. Meanwhile Asian stocks were subdued on Thursday afternoon after a private survey showed Chinese factory activity contracted in July, with mainland Chinese shares leading losses.

Back in Europe, the Bank of England is set to announce its monetary policy decision on Thursday, with economists polled by Reuters suggesting that the MPC will vote unanimously to keep rates on hold at 0.75% despite the looming risk of a no-deal Brexit.on Thursday reported a second-quarter net income of 1.05 billion euros , surpassing analyst expectations according to Reuters' estimates. The French bank posted a net income of 1.2 billion euros for the same quarter last year.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European stocks seen higher ahead of key Fed meetingEuropean stocks are set to open higher on Tuesday as investors prepare for an expected interest rate cut from the U.S. Federal Reserve.
Source: CNBC - 🏆 12. / 72 Read more »

Wall Street set to open lower as focus shifts to Fed meeting, Apple earningsWall Street's main indexes were set to open lower on Tuesday, as worries ab... Meh.
Source: Reuters - 🏆 2. / 97 Read more »

Asia stocks set to trade lower as investors await Fed rate decisionStocks in Asia were poised to trade lower on Wednesday amid dampened expectations for a resolution to the U.S.-China trade war. Meanwhile, investors await the U.S. Federal Reserve's announcement of its decision on interest rates, set to happen on Wednesday.
Source: CNBC - 🏆 12. / 72 Read more »

This Fed rate cut could signal the stock market’s peakThis Fed rate cut could signal the stock market’s peak, says investment manager Michael O'Sullivan: Nickola! RIIIIICOOOOLAAAA A Fed rate cut would signal a loving Trump relationship.
Source: MarketWatch - 🏆 3. / 97 Read more »