29 Oct 2015
European stocks struggle after Fed revives December rate hike talk
FXStreet (Mumbai) - The stock markets across Europe trade with a bearish undertone after the Federal Reserve revived December rate hike talk.
The pan-European Euro Stoxx 600 index dropped 0.35%. The blue chip Stoxx 50 index retreated 0.60%. Among regional indices, Germany’s DAX fell 0.20% and the UK’s FTSE declined almost 1%. The periphery nation stock markets also trade with losses.
The Fed statement released yesterday carried a slightly hawkish tone as it dropped the warning about slowing global growth, and indicated readiness to consider a rate move in December. The futures now price-in about 42-43% probability of a rate hike in December.
The European Central Bank last week signaled its readiness to inject more stimulus to boost prices and the People's Bank of China followed with its sixth interest rate cut in less than a year.
The pan-European Euro Stoxx 600 index dropped 0.35%. The blue chip Stoxx 50 index retreated 0.60%. Among regional indices, Germany’s DAX fell 0.20% and the UK’s FTSE declined almost 1%. The periphery nation stock markets also trade with losses.
The Fed statement released yesterday carried a slightly hawkish tone as it dropped the warning about slowing global growth, and indicated readiness to consider a rate move in December. The futures now price-in about 42-43% probability of a rate hike in December.
The European Central Bank last week signaled its readiness to inject more stimulus to boost prices and the People's Bank of China followed with its sixth interest rate cut in less than a year.