European stocks fall, Dow futures fall 300 points as traders react to Fed’s decision

European stocks fall, Dow futures fall 300 points as traders react to Fed's decision

Women wearing face masks exit a shopping mall where a sign is placed at an entrance reminding people of the need for masks at the Westfield Santa Anita Shopping Mall on June 12, 2020 in Arcadia, California. Shares of Unibail-Rodamco-Westfield fell on Thursday.

Frederick J. Brown / Agency France-Press / Getty Images

European stocks fell and US stock futures weakened on Thursday, giving European traders their first chance to react to the Federal Reserve’s decision and its cautious stance on the world’s top economies.

Stoxx Europe 600 SXXP,
Lost 1%, and the main regional index, German DAX DAX,
French CAC 40 PX1,
And UK FTSE 100 UKX,
Similar declines were reported.

Dow Jones Industrial Futures on the Industrial Average YM100,
Blue Chips dropped 359 points after a slight increase for DJIA,
+ 0.13%
On wednesday Futures on tech-heavy Nasdaq 100 NQ100,
Too weak.

The Federal Reserve on Wednesday, after European markets closed, Said it plans to keep interest rates at almost zero until at least 2024, As he also said that bond purchases would be made not only to enhance market performance, but also to enhance favorable market conditions. Chairman Jerome Powell gave a cautious view.

“Overall, the recent changes in the Fed’s communications indicate that the committee is comfortable with the current market conditions and the potential path to recovery. If the situation worsens, the Fed will leave little room for itself to strengthen existing guidance, “said Bill Diwani, a senior economist at Dutch bank ABN Amro.

“Markets need a little more time to digest the news because the reality is that the Fed’s message was not as close as the Hawkeyes,” added Naum Aslam, chief market analyst at Trade. “However, if we have already learned anything.” [quantitative easing programs], Market participants panicked when the Fed started scaling back from its asset purchase program. On this front, we have no clear and definite timeline. “

The Bank of England is also making interest rate decisions, and is not expected to take dramatic action.

European automakers, including Renault RNO
And Volkswagen VOW3,
New-car registrations fell 18.9% in August and 5.7% in July. The European Automobile Manufacturers Association said German registrations fell 20% and French registrations 19.8%.

UK clothing retailer Next NXT,
+ 2.01%
Rose 2%. Awaiting positive reports from Inditex ITX,
And H&M HM.B,
Further boosted to the fiscal year ending January’s profit forecast, it is now seeing a pretax profit of £ 300 million, up from its previous forecast of 195 million dollars. He further said that the sales have been better planned than expected, citing lockdown, its home strengths, children’sware, loungeware and sportswear businesses and more than half of its revenue before its out-of-store stores. .

Unibile-Rodamco-Westfield URW,
billion. Shopping mall operators fell 6 percent after announcing a capital increase of 1 billion euros, as well as plans to limit dividends and dispose of billions of euros of assets by the end of 2021.

Bitter GLJ,
+ 12.95%,
German leasing company, up 6% after a 40% decline on Wednesday. Grenk said he strongly denied allegations of accounting fraud by the short-seller, Viceroy Research, and said the German Bondsbank had a credit balance of 76 76.1 million euros on Tuesday.

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