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European stocks skid from 1-month high as Fed underwhelms

Published 09/17/2020, 03:24 PM
Updated 09/17/2020, 03:30 PM
© Reuters.
PEUP
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RENA
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URW
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VOWG_p
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STOXX
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SX7P
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SXAP
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SXPP
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(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
Sept 17 (Reuters) - European stocks fell from a one-month
closing high on Thursday after an underwhelming response to the
U.S. Federal Reserve's pledge to keep interest rates low for a
prolonged period.
The pan-European STOXX 600 .STOXX dropped 1.1% by 0710
GMT, on course to break its four-day winning streak.
The U.S. central bank on Wednesday vowed to keep interest
rates near zero until inflation is on track to overshoot the 2%
target, as expected. However, Fed Chair Jerome Powell said an
economic recovery is expected to slow, requiring continued
support from further government spending. U.S. tech stocks fell the most on Wednesday, while their
European peers shed 1.6%. Banks .SX7P , automakers .SXAP and
miners .SXPP were the biggest sectoral decliners in Europe,
down nearly 2%.
Carmakers Volkswagen VOWG_p.DE , Renault RENA.PA and PSA
Group PEUP.PA fell between 2.5% and 3% after industry data
showed new car sales fell by 17.6% in August. Property firm Unibail-Rodamco-Westfield URW.AS slumped
8.5% as it announced a 9 billion euro plan that includes capital
raise, to boost its balance sheet.

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