Europe’s stock markets and the dollar have reacted negatively to the decision of the United States Federal Reserve to avoid what would have been its first rate hike in nine years.
The AFP reported that as a result, stock markets in Europe and the dollar had closed lower on Friday.
“After all the build-up it was arguably a bit of a disappointment that the Fed chose to leave rates as they are,” said Spreadex analyst Connor Campbell.
“Not only that, but Janet Yellen’s statement was seen by many as more dovish than expected, with the chance that the central bank now won’t move until 2016.”
In late morning deals, London’s FTSE 100 index dropped 0.80 per cent to 6,137.20 points.
In the eurozone, Frankfurt’s DAX 30 sank 2.42 per cent to 9,982.20 points and the CAC 40 in Paris shed 2.28 per cent to 4,549.10 compared with Thursday’s close.
The Federal Reserve held its key interest rate locked near zero Thursday, citing worries about how the slowdown in China will hit the US economy.
Fed Chair Janet Yellen said the economy continues to grow moderately and that a rate increase could still take place before the end of the year.
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Source : Punch