European Stocks Dropping After US Fed Bullish Remarks

European stocks slipped and the dollar strengthened on Thursday after the Federal Reserve took an upbeat view of the world’s largest economy and signaled it was on track to raise interest rates this year.

The stronger dollar helped push U.S. oil prices to six-year lows and weighed on the price of gold.

Greece, where an anti-austerity prime minister took over on Monday, also kept investors nervous, although Greek shares regained some ground after falling 9.2 percent on Wednesday.

 
The Fed, after a two-day policy meeting, said it would be “patient” and would take international developments into account in deciding when to raise borrowing costs. Some saw that as indicating any rate increase could be delayed.

U.S. shares, which closed lower on Wednesday after the Fed statement, with energy stocks weakening, were set to open modestly higher, according to stock index futures. SPc1 DJc1.

German government bond yields fell, as did U.S. Treasuries, on this dovish view. U.S. 30-year bond yields US30YT=RR reached a record low on Wednesday. Concern over Greece, whose new government opposes the terms of Greece’s international bailout, also boosted demand for low-risk debt.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.