European stocks are expected to open lower on Thursday as investors around the world react to the latest US Federal Reserve meeting.
According to IG, the London FTSE opens 36 points lower at 6,043, the German DAX 112 points at 13,121, the French CAC 40 at 42 points at 5,022 and the Italian FTSE MIB 206 points at 19,745, according to IG.
European markets will have to keep up with their counterparts in Asia and the United States down, as traders digested the Federal Reserve’s promise to keep rates low for years to come.
Members of the Federal Open Markets Committee indicated that the U.S. nightly rate could remain anchored at the zero limit until 2023 as the central bank tries to stimulate inflation. In a statement, the committee said: “With inflation persistently below this long-term target, the Committee will aim to achieve moderately above 2% inflation over time, so that inflation averages 2%. over time “.
Typically, lower rate prospects over an extended period of time stimulate equity buying. However, that was not the case on Wednesday. The S&P 500 and Nasdaq both closed lower and the Dow ended the session high.
Meanwhile in Asia, the Bank of Japan maintained stable monetary policy on Thursday. In its monetary policy statement, the BoJ said the Japanese economy has begun to recover, but remains in a “severe situation”; due to the impact of the coronavirus pandemic at home and abroad. foreign.
In Europe, investors will be on the lookout for any Bank of England policy guidance, which also meets on Thursday. No change in the bank’s monetary position is expected today.
In terms of earnings, retailers Next and John Lewis Partnership will publish provisional results and Kier will publish preliminary results for the entire year.
– CNBC’s Eustance Huang and Fred Imbert helped report this story.