Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European stocks decline after Fed comments; Dax down 0.46%

Published 03/20/2014, 04:44 AM
Updated 03/20/2014, 04:44 AM
European stocks slide lower as Fed statement weighs

European stocks slide lower as Fed statement weighs

Investing.com - European stocks were lower on Thursday, as global equities came under pressure after the Federal Reserve indicated that rates could rise as soon as next year.

During European morning trade, the EURO STOXX 50 retreated 0.53%, France’s CAC 40 dropped 0.48%, while Germany’s DAX 30 slid 0.46%.

At the conclusion of its two-day policy setting meeting on Wednesday, the Fed said it would reduce its monthly bond purchases by an additional $10 billion to $55 billion.

Fed Chair Janet Yellen indicated that the bank could begin to raise interest rates about six months after the bond-buying program winds up, which is expected to happen this fall.

The Fed statement also emphasized that economic conditions could mean that rates would remain on hold at record lows for some time, even after inflation and employment return to their longer-run trends.

The central bank also updated its forward guidance, discarding the 6.5% unemployment threshold for considering when to increase borrowing costs and said it will look at a wide range of information.

Financial stocks were mixed, as French lenders BNP Paribas slipped 0.21% and Societe Generale rose 0.29%, while Germany's Deutsche Bank declined 0.66%.

Earlier in the day, Credit Agricole said it is targeting at least €4 billion of annual net income by 2016, exceeding analysts’ estimates.

Among peripheral lenders, Italy's Intesa Sanpaolo and Unicredit added 0.04% and 0.96%, while Spanish banks Banco Santander and BBVA retreated 0.48% and 0.63% respectively.

Elswehere, ING Group gained 0.79% after the Dutch financial services company raised $1.18 billion with a sale of shares in its U.S. insurance unit as the parent company ended its majority stake.

In London, FTSE 100 shed 0.54%, weighed by losses in GlaxoSmithKline, down 1.30%, as the company's MAGE-A3 experimental cancer treatment failed to benefit lung cancer patients in a late-stage clinical trial.

Meanwhile, financial stocks were mixed. Lloyds Banking eased 0.06% and Barclays lost 0.68%, while HSBC Holdings climbed 0.84% and the Royal Bank of Scotland rallied 1.72%.

In the mining sector, Rio Tinto and BHP Billiton gained 0.38% and 0.48% respectively, while rivals Glencore Xstrata and Vedanta Resources advanced 0.74% and 0.85%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% uptick, S&P 500 futures signaled a 0.01% dip, while the Nasdaq 100 futures indicated a 0.03% gain.

Later in the day, the U.S. was to publish the weekly report on initial jobless claims, as well as data on existing home sales and manufacturing activity in the Philadelphia region.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.