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European stocks open lower after Fed, BoJ hold; Dax down 0.17%

Published 04/28/2016, 03:28 AM
© Reuters.  European stocks slide lower after central bank decisions
UK100
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FCHI
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DE40
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STOXX50
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HSBA
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BARC
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LLOY
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NWG
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DBKGn
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CBKG
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BNPP
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SOGN
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AIR
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BBVA
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SAN
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WPP
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AAL
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BHPB
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ISP
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CRDI
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ESM24
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1YMM24
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NQM24
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FRES
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GLEN
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Investing.com - European stocks opened lower on Thursday, after the Federal Reserve and the Bank of Japan decided to leave their monetary policies unchanged.

During European morning trade, the EURO STOXX 50 declined 0.45%, France’s CAC 40 dropped 0.50%, while Germany’s DAX 30 slipped 0.17%.

The Fed left interest rates unchanged close to zero on Wednesday and offered little guidance on future rate hikes.

In a statement released following its two-day meeting, the U.S. central bank said it will continue to "closely monitor inflation indicators and global economic and financial developments."

Separately, markets were surprised by the BoJ’s decision on Thursday to leave its current policy unchanged, quashing expectations for additional stimulus measures.

Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) declined 0.67% and 0.77%, while Germany’s Commerzbank (DE:CBKG) slid 0.33%.

Deutsche Bank (DE:DBKGn) overperformed by surging 3.99% after the bank posted a 58% decline in net profit in the first quarter.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) lost 0.18% and 0.89% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) dove 2.14% and 5.88%. BBVA earlier reported a 54% drop in first quarter net profit.

Elsewhere, Airbus Group (PA:AIR) plunged 5.90% after reporting a 50% decline in first-quarter net profit and said it is "facing a serious challenge for production and customer deliveries" for one of its military aircraft.

In London, FTSE 100 lost 0.92%, weighed by losses in the financial sector, as Lloyds Banking (LON:LLOY) plunged 3.05% after reporting a 46% drop in first-quarter pre-tax profit.

Barclays (LON:BARC) saw shares tumble 0.97% and HSBC Holdings (LON:HSBA) declined 0.76%, while the Royal Bank of Scotland (LON:RBS) plummeted 1.15%.

WPP (LON:WPP) added to losses, with shares down 0.93% even after the advertising company an 11% increase in the first quarter revenue.

Meanwhile, mining stocks were broadly higher on the commodity-heavy index. Shares in Glencore (LON:GLEN) advanced 1.06% and Fresnillo (LON:FRES) jumped 1.40%, while Bhp Billiton (LON:BLT) rallied 1.86% and Anglo American (LON:AAL) surged 3.14%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.48% loss, S&P 500 futures a 0.49% drop, while the Nasdaq 100 futures indicated a 0.28% slide.

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