Euro Stocks Lower Ahead of FOMC in Cautious Trade
The European trading session kicked off with moderate declines in the stock markets as investors showed caution ahead of FOMC policy statement due from the US later today.
Early European trade saw the the EURO STOXX 50 retreat 0.58%, Germany’s DAX 30 fell 0.52%, whilst France’s CAC 40 rose 0.74%, primarily on the back of better than expected Consumer confidence data released this morning.
Meanwhile in In London, the commodity heavy FTSE 100 opened with a steep decline of 0.54%, as sharp losses in the mining sector continued to weigh.
Federal Reserve Policy Statement
The cautious low-volume trade seen in the European trading session can be attributed to many investors awaiting the conclusion of the Federal Reserve two-day policy meeting later today. It is widely believed that the Federal Reserve will keep interest rates on hold having raised interest rates for the first time in nearly a decade in the previous meeting last month.
Although no shocks in rate changes are expected, investors will be looking to the Federal Reserve policy statement for any signs that the central bank is mulling over slowing the rate of interest rate rises this year following the disastrous global stock market turmoil seen already.
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